I noticed the first thing this morning. the bid/ask was the typical recent $0.0022/$0.003, then all of a sudden someone hit the ask for about 10,000 shares ($45 worth) after that someone pushed it up to $0.0045 and put in buy order for about 4.9 million shares.
There appears to be nothing from pacer or any news annoucement.
I am still looking at the pacer filings.
One filing does mention they expect between 5 million to 7 million once everything is sold off.
From what I can tell, it looks like a trustee is operating the company. So far there have been some equipment sales and it looks like the proceeds will have to be paid to the note holders. I am still trying to find out what is suppose to happen to the coal leases. As far as I can tell, I think that the company is supposed to sell them off at some point but I can't tell so far. I also tried to contact the trustee but have not heard back yet.
The big risk and main item, what are the coal leases worth? If they are worth the low end of the range, it looks like to me that there will only be enough money to pay off the liabilities with little to nothing left over for the common shares.
The summary lists $19.8 million of assets against $5.4 million of liabilities. The problem is that $17.7 million of that assets are Evans Coal that is mainly in coal leases. If the coal leases have none to little value, then there will be nothing left for the common shareholders.
In looking at more of the reports, it looks like all of the equipment either has been sold off or is scheduled to be sold off, plus the employees were laid off Dec 31, 2011. The CEO (I think) is being paid $4,000 per month (down from $10,000 per month) to assist.
In one of the documents it was stated that since there are no employees or equipment, that any coal mining should be contracted out, if it would be profitable.
Louis J. Desy Jr.
LouisDesyjr@gmail.com
Disclosure: I do NOT own shares in this company.
