James River Files For Bankruptcy Protection - Update

(RTTNews) - Coal producer James River Coal Co. (JRCC) Monday said the company and its subsidiaries have filed voluntary petitions for reorganization under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the Eastern District of Virginia Richmond Division.

James River intends to use the Chapter 11 process to continue implementing a comprehensive turnaround plan aimed at addressing its challenges in the changing coal mining industry.

The company expects its mining operations and customer shipments to continue in the ordinary course throughout the restructuring process.

In conjunction with its restructuring, James River will enter into a $110 million debtor-in-possession or DIP financing facility with several large financial funds.

When approved by the Bankruptcy Court, the new financing and cash generated from James River's ongoing operations will be used to support the business during the restructuring process.

The stock, which closed down 4.3 percent at $0.72, plunged 48.28 percent in the extended trade.