Bankrupt James River Coal Co., after repeatedly postponing an asset auction, chose a unit of Blackhawk Mining LLC as the lead bidder, with an opening offer of $50 million, Bloomberg News reported yesterday. The Blackhawk unit will be the stalking-horse bidder at the auction to be held today in New York, according to court papers. A sale hearing to consider Blackhawk’s or other possible bids is scheduled for Aug. 20 in Richmond. Blackhawk Mining, based in Lexington, Kentucky, operates mines and coal-processing facilities. James River’s Hamden mining complexes, assets of the Logan & Kanawha Coal Co. and the Triad complex are up for sale, according to court filings. The buyer will also assume some liabilities. James River, based in Richmond, sought bankruptcy protection from creditors April 7, listing more than $800 million in debt and $1 billion in assets. Declining coal prices caused it to idle a dozen mines.
