Blackjewel Creditors Call for Trustee to Take Over Bankruptcy

The bankruptcy case for Blackjewel LLC should be taken over by a court-appointed liquidator, unsecured creditors argue, saying the coal miner doesn’t have enough money to confirm a Chapter 11 plan.

The company has sold substantially all of its assets and resolved disputes over unpaid employee wages and lender claims, but it now owes more in legal and professional fees than it has available, an unsecured creditors’ committee told the U.S. Bankruptcy Court for the Southern District of West Virginia.

Lawyers for Blackjewel are still dealing with lingering issues involving old leases and contracts while also investigating potential claims against ...