Cambrian Coal Seeks Court Approval of Bankruptcy Auction

Cambrian Holding Company Inc., a bankrupt coal mining company based in Kentucky, is seeking court permission to sell itself through an auction.

The company’s request to approve its bidding procedures, filed July 12 at the U.S. Bankruptcy Court for the Eastern District of Kentucky, doesn’t list any offers.

But it’s asking for a break-up fee—up to 3% of the sale price plus expenses up to $500,000—for a stalking horse bidder, which is the initial offer that sets the starting price. The stalking horse would receive the breakup fee if another buyer wins.

The company, which has mines in Kentucky and ...