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Kentucky mines to be sold as part of bankruptcy proceedings
Bankruptcy often has a significant impact on the way a business operates. This makes sense, given that businesses going through the bankruptcy process have to figure out a way to make themselves viable after the process is complete. Oftentimes, part of what has to happen for a business to remain viable going forward after a bankruptcy is to sell off assets and portions of the business.
This seems to be what is going on with Alpha Natural Resources, a mining company currently going through Chapter 11 bankruptcy. The company is based out of Bristol, Virginia, but will be selling off over 20 mining sites next month as part of bankruptcy proceedings. The properties to be sold are not only in Virginia, but also West Virginia, Tennessee, Illinois, and Kentucky, where four mines are to be sold.
Several factors are being attributed to the company’s bankruptcy filing, including significant declines in the sale of metallurgical and steam coal, as well as burdensome government regulations.
The court handling the company’s bankruptcy reportedly produced an order last month which provides an outline of the bidding process. Needless to say, the sales are more complicated given that they are part of a bankruptcy filing. Ordinarily selling parts of a business, or business assets, does require careful planning anyway, but when there is a bankruptcy proceeding involved, the proceeds of the sale do not go to profit the company making the sale, but the company’s creditors. Both the selling company and potential buyers can benefit from working with an experienced advocate in this process.