Blackjewel gets nod to access $5 million loan; original motion denied

By Caroline Salls

Pittsburgh, July 3 – Blackjewel, LLC received interim court approval to obtain $5 million in debtor-in-possession financing from Riverstone Credit Partners – Direct, LP, according to an order filed Wednesday with the U.S. Bankruptcy Court for the Southern District of West Virginia.

A final hearing is scheduled for July 31.

When it filed its Chapter 11 cases on Monday, Blackjewel requested court approval of a commitment for $20 million in DIP financing from Clearwater Investment Holdings, LLC.

However, a Tuesday docket entry said the original financing motion was denied by the court.

As a result, the company filed an emergency motion on Thursday seeking approval of the Riverstone loan.

“The requested interim financing will allow the debtors to secure their assets, avoid the immediate conversion of these cases to cases under Chapter 7, and permit the debtors to continue working collaboratively with their lenders and key stakeholders to maximize value and obtain additional financing,” the motion said.

The smaller Riverstone facility will mature three months from closing, according to Wednesday’s order, and will accrue interest at Libor plus 850 basis points.

In comparison, the Clearwater facility was proposed to mature on Dec. 31 and bear interest at Libor plus 600 bps.

Blackjewel is a Milton, W.Va.-based coal producer. The Chapter 11 case number is 19-30289.

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