Blackjewel debtors Cumberland and Powell secure conversion of cases

By Sarah Lizee

Olympia, Wash., May 7 – Blackjewel, LLC debtors Cumberland River Coal, LLC and Powell Mountain Energy, LLC’s cases were converted to Chapter 7 from Chapter 11, according to an order filed Thursday with the U.S. Bankruptcy Court for the Southern District of West Virginia

As previously reported, Blackjewel’s Chapter 11 plan was confirmed by the court on March 22. However, Cumberland River Coal and Powell Mountain Energy’s plans were not confirmed.

The debtors said confirmation was denied in the Cumberland and Powell cases because neither entity could satisfy section 1129(b) of the Bankruptcy Code. Specifically, no creditors returned a voting ballot to the debtors, and as such no impaired class of claims voted to accept the plan.

“Conversion of the Cumberland and Powell Mountain Chapter 11 cases to cases under Chapter 7 is in the best interests of their respective estates and creditors,” the motion said.

“Cumberland and Powell Mountain both have no assets, and therefore no ability to fund administrative expenses or satisfy creditor claims.”

Blackjewel is a Milton, W.Va.-based coal producer. The company filed bankruptcy on July 1, 2019 under Chapter 11 case number 19-30289.

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