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United States : JUDGE approves funding deal for James River Coal.

A federal bankruptcy judge on 7 May 2014 approved James River Coal Co.'s request to borrow $110 million during its Chapter 11 bankruptcy process.

The Richmond-headquartered company's unsecured creditors first objected to the proposed debtor-in-possession funding, which will be given by a syndicate of lenders.

The unsecured creditors committee argued that the interest and fees rate on the funding were "extraordinarily expensive" and the loan should not be approved unless modified.

Lawyers for the company and the unsecured creditors committee said in a court hearing on May 7 that they had reached an agreement to amend some of the loan terms, allowing the debtor-in-possession funding to be approved.

James River Coal filed for bankruptcy protection for a second time on April 7, listing assets of $1.07 billion against debt totaling $818.7 million. The company said it could not sustain its debt load any longer after a decrease in costs and demand for the coal it mines in the central Appalachian region.

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Publication:Mena Report
Date:May 9, 2014
Words:177
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