Kentucky coal producer JW Resources, backed by an affiliate of HIG Capital, filed for bankruptcy intending to sell assets through a 363 sale.
The filing was in the U.S. Bankruptcy Court for the Eastern District of Kentucky on June 30.
The filing listed debt of $50-100 million. The secured lenders to the company are GB Credit Partners and Bayside JW Resources.
In March 2014, middle market lender GB Credit Partners, the investment management operation of Gordon Brothers Group, provided a $15 million term loan and revolver to JW Resources. Proceeds funded working capital.
The company blamed the bankruptcy on a 26% drop in coal prices through April 2015, higher mining and processing costs due to government regulations, and declining demand for coal. The company failed to find more funding from secured lenders, equityholders, or third parties.
JW Resources hired Energy Ventures Analysis (EVA) as investment bankers to help carry out the sale through an open auction process.
Bayside Capital is the majority owner of JW Resources, with an equity holding of 74.4%, court filings showed. Investment firm Bayside Capital is an affiliate of HIG Capital and provides debt and equity investments to middle-market companies.
JW Resources produces mines coal with mineral reserves in the Central Appalachian regions of Kentucky. JW Resources acquired its assets and business operations from Xinergy Corp. in February 2013. – Abby Latour