Blackjewel secures interim approval to access junior DIP financing

By Caroline Salls

Pittsburgh, July 19 – Blackjewel LLC obtained court approval to access $2.9 million in junior debtor-in-possession financing on an interim basis, according to an order filed Friday with the U.S. Bankruptcy Court for the Southern District of West Virginia.

A final hearing is scheduled for Aug. 14.

The junior financing will be provided by funds managed or advised by Highbridge Capital Management, LLC and Whitebox Advisors LLC.

The junior financing will mature in four months, with an option for a two-month extension upon payment of a 1% fee.

The facility will accrue interest at Libor plus 1,250 basis points with a 2% Libor floor and carries a 4% original issue discount.

The company said the loan is short-term bridge financing, which will give it more time to continue working with key stakeholders to maximize value.

According to the motion, Blackjewel is working with the DIP lenders and several other potential investors to provide additional and long-term financing that, if obtained and approved by the court, will allow the company to maximize the value of its assets and estates through a sale process.

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

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