A bankruptcy judge today in West Virginia approved a motion on behalf of Blackjewel, Llc. It was an, ‘Emergency Motion For an Order Authorizing Debtors to Obtain Interim Junior, Postpetition Financing From New DIP Lenders.’
Blackjewel secured a short-term loan in the amount of $2,900,000 from two lenders, Highbridge Capital & Management, LLC and (ii) Whitebox Advisors LLC.
The financing from the DIP Lenders is short-term, ‘bridge financing,’ which will allow the Debtors more time to continue working collaboratively with their key stakeholders to find a permanent solution to the problem of the mines and the workers that were laid-off from them, who are in many cases in a state of limbo as to their current status with the company.
Workers for both Belle Ayr & Eagle Butte have gone onto Facebook to report their health benefits and prescription benefits were cancelled today, forcong many employees to come out of pocket for medical services, doctor’s visits and prescription. There was no word as to whether any of todays new money, which will be wire transferred into Blackjewel’s account before the end of the business today, will go towards reinstating the lost benefits.