Black Diamond Mining files bankruptcy
Clients Black Diamond Mining Company, LLC
Jones Day represented Black Diamond Mining Company and its affiliated debtors, producers of up to 2 million tons per year of steam coal in Eastern Kentucky, in their chapter 11 restructuring. These cases were commenced as involuntary cases in February 2008, and orders for relief were entered in March 2008. Prior to the bankruptcy, the Black Diamond companies were subject to unfavorable long-term supply contracts and were faced with a severe liquidity crisis that eventually led to the shut-down of their businesses. In connection with the bankruptcy filing, the Black Diamond debtors have been freed from their burdensome supply contracts, negotiated new financing arrangements with their senior lenders, restarted their operations, stabilized their businesses and begun the process of evaluating restructuring alternatives.