Black Diamond reaches tentative agreement with most creditors after disclosure hearing postponed

By Jennifer Lanning Drey

Portland, Ore., May 5 - Black Diamond Mining Co. has reached a tentative agreement with its lenders, its official committee of unsecured creditors and the entities affiliated with the estate of Ross Harris resolving issues that previously delayed the company's disclosure hearing, according to a source familiar with case.

The agreement follows intensive negotiations ordered by the U.S. Bankruptcy Court for the Eastern District of Kentucky, which postponed Black Diamond's hearing for approval of its disclosure statement to May 13 from April 30.

However, one secured creditor of the company is not yet agreeable to the plan, the source said.

The tentative arrangement calls for the wind-down of the company under Chapter 11.

Black Diamond, based in Prestonsburg, Ky., produces and markets Central Appalachian steam and stoker coal. The company filed for bankruptcy on Feb. 19, 2008. Its Chapter 11 case number is 08-70066.

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