Horizon Natural Resources' sale to Wilbur Ross-led group confirmed by court

By Jeff Pines

Washington, Sept. 1 - Horizon Natural Resources Co.'s reorganization plan - including the sale of the company for $786 million to a group of investors led by Wilbur Ross - was confirmed by the U.S. Bankruptcy Court for the Eastern District of Kentucky.

The plan divides the company into two new units, International Coal Group and Old Ben Coal Co.

"With the cooperation of the Office of Surface Mining and the states of Kentucky, West Virginia, Illinois, Indiana and Tennessee, we have created the fifth largest U.S. coal company, an enterprise free of contingent liabilities," said Wilbur L. Ross Jr., chairman of International Coal Group, in a news release.

"Our one billion tons of steam coal reserves and $600 million of highly profitable projected 2005 revenues will provide a basis for consolidating other producers. Furthermore, Old Ben has been provided with resources estimated to be adequate to deal with its reclamation liabilities and to continue mining those properties that have economically recoverable reserves. We are proud that the plan meets the regulators' primary objective of leaving no permit behind," he said.

Daniel Geiger has been appointed as Old Ben's chief executive officer.

Horizon filed for bankruptcy on Nov. 13, 2002. Its Chapter 11 case number is 02-14261.

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