Blackjewel creditors ask for bankruptcy conversion to Chapter 7

摘要

The official committee of unsecured creditors to Blackjewel LLC asked the federal bankruptcy court to convert the coal company’s case to a Chapter 7 liquidation, arguing that Blackjewel’s debtors face significant difficulty completing the bankruptcy process without a vested trustee. In an April 24 court filing, the creditors said that while Blackjewel’s debtors are focused on the sale or transfer of remaining mining permits and an outstanding probe into “claims against multiple parties,” including the financial dealings of former Blackjewel CEO Jeff Hoops, the company’s estates are “presently administratively insolvent” and it is “highly improbable” they will have sufficient funds available to complete a plan to liquidate under a Chapter 11 bankruptcy proceeding.