Coal-mining company Armstrong Energy Inc. filed for bankruptcy yesterday with a plan to turn over ownership of its struggling operations to a competitor and its lender, the Wall Street Journal reported. The St. Louis company plans to use the chapter 11 process to transfer the ownership of its five mines and other operations to a new entity owned by Illinois coal company Knight Hawk Holdings LLC and some of Armstrong Energy’s noteholders. Nearly all of Armstrong Energy’s shares are now owned by energy investor Rhino Resources Partners Holdings LLC. The terms of the transaction weren’t immediately disclosed in documents filed in U.S. Bankruptcy Court in St. Louis.
