Flaherty Served as Debtors’ Counsel in Fast-Moving Chapter 11 Coal Bankruptcy
Flaherty represented Ben’s Creek Carbon, LLC and its affiliated entities in a complex Chapter 11 bankruptcy proceeding that preserved one of Southern West Virginia’s metallurgical coal mining operations.
Ben’s Creek operated a fully integrated mining enterprise—including deep and surface mining operations, thousands of acres of coal reserves, a preparation plant, rail loadout, and a refuse impoundment—supported by comprehensive permitting from the West Virginia Department of Environmental Protection. The company’s international profile, anchored by its publicly traded parent on the London Stock Exchange, added a global dimension to the proceedings and increased scrutiny from stakeholders and creditors alike.
At the time of filing, Ben’s Creek faced an immediate liquidity crisis, with just enough capital to meet payroll. Flaherty moved quickly to stabilize the business, negotiating and securing critical Debtor-in-Possession (DIP) financing that preserved the company’s operations and protected its asset base.
Over a span of seven months, Flaherty orchestrated and led intensive negotiations and litigation with a wide array of stakeholders, including:
- The U.S. Department of Labor
- The DIP lender
- Equipment Lenders
- Investors
- Employees, vendors, and the company’s coal brokerage partner
By maintaining lean operations and launching a robust global marketing campaign, Flaherty successfully positioned the company for a strategic sale under Section 363 of the Bankruptcy Code. The transaction resulted in the transfer of substantially all assets to a new owner committed to continued mining operations, preserving jobs and protecting environmental interests.
The engagement was led by a team of seasoned bankruptcy, energy, and employment attorneys, including Jim Lane, Chris Brumley, Eric Johnson, Elizabeth King, Jamie Stebbins, Evan Aldridge, Jeff Wakefield, and Keirsan Lockard.
If your company or client is facing financial problems, Flaherty offers the experience, agility, and results to guide you through.
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