Coal producer Xinergy, subsidiaries file for bankruptcy

(Photo: Xinergy Corp)

ROANOKE, Va. (AP) – Coal producer Xinergy Ltd. and more than two dozen subsidiaries have filed for Chapter 11 bankruptcy.

Knoxville, Tennessee-based Xinergy filed a Chapter 11 petition last week in U.S. Bankruptcy Court in Roanoke, Virginia. The petition lists zero to $50,000 in assets and about $100 million to $500 million in liabilities.

Xinergy produces steam and metallurgical coal at mining operations in Virginia and West Virginia.

Xinergy CEO Bernie Mason says in a news release that U.S. coal markets have faced significant challenges in recent years, including declining demand and increased environmental regulations.

Mason also says Xinergy’s cash position has been eroded by a harsh winter that affected coal mining and shipments.

Xinergy is seeking the court’s approval to obtain debtor-in-possession financing. The company says it will continue operations while it reorganizes.

Copyright 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s