Glady Fork's future unclear after judge says company defaulted on lease

摘要

Glady Fork Mining's nearly seven-month effort to reorganize under federal bankruptcy laws hit a brick wall last week when the U.S. trustee asked a West Virginia bankruptcy court to dismiss the company's Chapter 11 case and the company was declared in default on an equipment lease. Whether the small Upshur County, W.Va., coal producer intends to shake off the impact and continue to pursue reorganization was unclear as company attorney Thomas Fluharty did not return several phone calls seeking comment on the twin legal actions. Company owner Kelly Grey also could not be reached. U.S. Bankruptcy Judge Edward Friend in Elkins, W. Va., scheduled a hearing for Jan. 28, on the trustee's motion to toss out the case or convert it to a straight Chapter 7 liquidation because Glady Fork failed to file monthly operating reports for August, September and October as required by bankruptcy rules.