HD Media

LEXINGTON, Ky. - Blackhawk Mining LLC announced Wednesday in a news release that its "Plan of Reorganization" has been approved in the U.S. Bankruptcy Court of Delaware.

The plan will eliminate more than 60 percent of Blackhawk's total debt and provide for more than $50 million in incremental liquidity and the restructuring transaction will be effectuated with no disruption to the company's employees, vendors, customers or landlords, the release stated.

Blackhawk officials agreed to the terms of the plan, which allowed the company to obtain plan confirmation in only 40 days.

Under the plan, Blackhawk's $639 million first-lien term loan will be discharged and lenders will receive 71 percent of the company's equity and a newly issued $375 million first-lien term loan.

Blackhawk's $318 million second-lien term loan will also be discharged and lenders will reciever 29 percent of the company's equity.

Additionally, Blackhawk announced that the members of its newly constituted board of directors will include Michael Quillen, Nicholas Glancy, Lawrence Clark, Richard Robison and Jesse Parrish.

The company is expected to emergence from bankruptcy as soon as early September.

Blackhawk is a privately-owned coal mining and marketing company headquartered in Lexington, Kentucky. The company operates ten mining complexes across West Virginia and Kentucky with approximately 2,800 employees. Blackhawk primarily sells metallurgical coal to a diverse array of domestic and international steel producers and industrial customers.