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Loan mutual fund outflows ease; ETFs show inflows

Cash outflows from bank-loan funds eased further to $298 million during the week ended Aug. 27, from $540 million in the week ended Aug. 20 and $687 million the week prior, according to Lipper. The influence of bank-loan ETFs on this week’s number was negative 17%, as Lipper recorded a $51 million inflow into ETFs. This compares to a $47 million outflow last week.

There now have been 18 weeks of outflows over the past 20 weeks, for a total outflow of $10.2 billion over that span, which follows a record-shattering 95-week inflow streak that totaled $66.7 billion.

The trailing-four-week average improves slightly to negative $755 million per week, from negative $782 million last week. This measure remains below the recent peak of negative $858 million, from the week ended June 11.

The year-to-date fund-flow reading pushes deeper into negative territory, at $3 billion, based on a net withdrawal of $3.6 million from mutual funds against a net inflow of $509 million to ETFs. In the comparable year-ago period, inflows totaled $39.7 billion, with 11% tied to ETFs.

The change due to market conditions was a positive $143 million, versus total assets of $104.4 billion at the end of the observation period. The ETF segment comprises $7.9 billion of the total, or approximately 8%. – Joy Ferguson

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James River Coal nets court nod for asset sale to Blackhawk Mining

The bankruptcy court overseeing the Chapter 11 proceedings of James River Coal Co. yesterday approved the sale of the company’s assets to JR Acquisition, an affiliate of Blackhawk Mining, for an aggregate purchase price of $52 million, plus assumption of certain liabilities.

As reported, according to court filings the purchased assets include those assets known as the Hampden Complex (including the assets of debtor Logan & Kanawha Coal Company); the Hazard Complex (other than the assets of debtor Laurel Mountain Resources); and the Triad Complex.

According to its website, Blackhawk Mining was formed in 2010 to acquire and operate idled coal reserves, mines, preparation-plant and loading facilities formerly owned by Black Diamond Mining in Floyd County, Ky. Among other things, Blackhawk operates a combination of underground continuous miner sections and contour-surface mines, with a high-wall miner in the Elkhorn and Fireclay, Ky., and coal seams, with production processed through a preparation plant and train-loading facility at Spurlock, Ky. – Alan Zimmerman

 

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James River Coal assets to be acquired by Blackhawk Mining for $52M

James River Coal Co. said it has selected JR Acquisition, a subsidiary of Blackhawk Mining, as the successful bidder for certain of its assets for an aggregate purchase price of $52 million, plus assumption of certain liabilities.

According to an Aug. 21 notice of the selection of the bidder filed with the bankruptcy court in Richmond, Va., the purchased assets include those assets known as the Hampden Complex (including the assets of debtor Logan & Kanawha Coal Company); the Hazard Complex (other than the assets of debtor Laurel Mountain Resources; and the Triad Complex.

A hearing to approve the sale is scheduled for tomorrow.

As reported, the auction for the company’s assets was initially set for July 8, but was delayed five times, finally occurring on April 18 and, according to court filings, lasting through Aug. 20. According to court filings, Blackhawk Mining was disclosed as the stalking-horse bidder for the auction on Aug. 16, just two days before it got underway, with an aggregate purchase-price bid of $50 million, plus the assumption of certain liabilities.

Proceeds are to be used to pay certain expenses now facing the company and to repay existing outstanding DIP loans. There is roughly $90 million outstanding under the facility, according to the company’s July 30 operating report filed with the bankruptcy court.

According to its website, Blackhawk Mining was formed in 2010 to acquire and operate idled coal reserves, mines, preparation-plant and loading facilities formerly owned by Black Diamond Mining in Floyd County, Ky. Among other things, Blackhawk operates a combination of underground continuous miner sections and contour-surface mines, with a high-wall miner in the Elkhorn and Fireclay, Ky., coal seams, with production processed through a preparation plant and train-loading facility at Spurlock, Ky. – Alan Zimmerman