Replies to post #309 on James River Coal fka JRCCQ

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JRCC $0.2685

JRCC wins $130M Bk loan

11:49 am et
James River Coal Co. won court approval to start drawing on a $110 million bankruptcy loan as it looks for a buyer or investor in its newly filed Chapter 11 case.
Judge Kevin R. Huennekens of the U.S. Bankruptcy Court in Richmond, Va. , on Wednesday authorized the Appalachian coal miner to borrow up to $80 million of the loan, court papers show.
Judge Huennekens will consider allowing James River to borrow the full amount of the loan at a May 7 hearing.
James River sought Chapter 11 protection earlier this week with plans to continue an ongoing search for either a buyer or fresh capital. The loan, arranged by Deutsche Bank Securities Inc. with Cantor Fitzgerald Securities as agent, will fund James River's operations in the meantime.
The company also plans to use the loan to refinance its existing debt, including paying nearly $190,000 in fees and other charges owed to its existing lenders and another $4.2 million owed under lease agreements with General Electric Capital Corp.
The loan terms require James River to secure at least one sale or investment proposal by July 15 to avoid default, court papers show. The company has filed its bidding procedures proposal with the bankruptcy court, which must sign off on the timeline.
James River sought bankruptcy protection after skipping an interest payment on its debt, amid mounting losses and tight liquidity. The coal industry has seen sharp declines, as the cost of natural gas, a competing energy source, has fallen and as gas demand has risen in the U.S.; consequently, James River has seen its earnings fall dramatically.
For 2013, James River posted a net loss of $16.4 million on the sale of approximately 8.4 million tons of coal. The company entered Chapter 11 protection with $818.7 million in debt overall.
James River has eight mining operations, with 16 active mines in Indiana , Kentucky and West Virginia , which contain about 340 million tons of coal reserves. The company ships coal to electricity generators, industrial users and steel companies in the U.S. and abroad.
-- Stephanie Gleason contributed to this article.
(Dow Jones Daily Bankruptcy Review covers news about distressed companies and those under bankruptcy protection. Go to http://dbr.dowjones.com)
Write to Jacqueline Palank at [e-mail]
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04-10-14 1149ET
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