Bankruptcy Law News

Blackjewel Sues Former CEO’s Investment Company for $34 Million

June 12, 2020, 6:11 PM

In 2019, now-bankrupt coal mining company Blackjewel LLC transferred some $34 million to an investment firm owned by the wife of its former CEO and a family trust. Now it’s suing to get the money back as part of its bankruptcy case.

The complaint, filed Thursday in the United States Bankruptcy Court for the Southern District of West Virginia, says Blackjewel wrongly paid the money to Clearwater Investment Holdings LLC in the six months leading up to the company’s July 2019 bankruptcy filing, when the company was already insolvent.

The transfers were falsely classified as loan payments, but there were...

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