Cloud Peak delays bankruptcy auction by a week
In another sign of coal country’s hazy future, bankrupt coal operator Cloud Peak Energy requested Wednesday to delay the scheduled auction and sales hearing of two Wyoming coal mines.
Bankrupt coal companies unable to repay outstanding debt can auction off their assets to bidders, often anointing mines with new ownership to keep the facilities pumping out coal. The auction of Cloud Peak’s assets will occur a week later than anticipated on Aug. 8, causing some industry experts to speculate it has yet to receive suitable bids or appease the competing interests of creditors. It is not uncommon for courts or companies to reschedule bankruptcy cases.
A spokesman for Cloud Peak declined to comment on the delay.
Speculation over the future of Cloud Peak’s Cordero Rojo and Antelope coal mines took off when the publicly traded company filed for bankruptcy in May. On top of months of financial turmoil, the company slashed retirement and health care benefits for its workers last year. In March, the New York Stock Exchange blocked the company from trading due to Cloud Peak’s poor financial performance.
Read more: https://trib.com/business/energy/cloud-peak-delays-bankruptcy-auction-by-a-week/article_6c9332fa-51c3-52e4-8f7a-ad7ca132691d.html
(Casper Star Tribune)
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