UPDATE: PINEVILLE, WV (WOAY) – Pinnacle Mining Company has officially closed.
Workers tell WOAY NewsWatch that the doors are locked and most employees are out of a job. 49 out of the 400 workers will continue working at the cleaning plant. A worker says there is about six weeks worth of coal on the ground that has to be cleaned up.
PINEVILLE, WV (WOAY) – Pinnacle Mining Company, LLC has filed for chapter 11 bankruptcy.
The documents were filed in Northern Alabama on Sunday, October 14, 2018.
Mission Coal has two deep mines and one surface mine in West Virginia and one deep mine in Alabama with coal qualities varying between low-volatility, mid-volatility, and high-volatility coal. Through Sunday, the company had spent roughly $28 million upgrading the mining complexes, according to the filing, but “despite favorable market forces and commodity pricing,” Mission was unable to maximize the value of their operations.
Mission has roughly $175 million in debt, including $104 million outstanding under a first lien secured term loan and $71 million outstanding under a second lien secured term loan. As of Sunday, the company’s total cash balance is about $55,000 and does “not have readily available sources of additional financing,” according to the filing.
Mission owes $32.1 million to its top 50 creditors with the largest claims, including $9.73 million to United Mine Workers of America members’ pensions and benefits trustees, $4.9 million and $4 million to Michael Hollard and Bluestone Coal, respectively, for litigation purposes. The company also owes $3.2 million to Natural Resource Partners, $2.1 million to Carter Machinery and $1.95 million to Alabama Power.