Bankrupt coal producer Blackjewel LLC, an affiliated marketing company and the U.S. Department of Labor have agreed to a number of stipulations that will halt the transport of coal at three sites in Virginia until the issue of idled employees receiving overdue pay is resolved, according to a filing in a federal bankruptcy court, the Bristol (Va.) Herald Courier reported. The federal government argues that the coal at three Blackjewel facilities in Raven, Honaker and Appalachia are “hot goods” produced in violation of the Fair Labor Standards Act, which prohibits the transportation of goods made in violation of minimum wage and overtime requirements. Blackjewel and the marketing company, Blackjewel Marketing and Sales Holdings LP, “agree that they shall not transport, offer for transportation, ship, deliver, sell, or otherwise place into commerce any coal mined, processed, or stored in Virginia, including but not limited to the Virginia Coal” at the three locations “until the issue of the uncompensated work performed on the Virginia Coal by Debtors’ employees is resolved,” states the Friday filing. Blackjewel filed for chapter 11 bankruptcy protection on July 1 in U.S. Bankruptcy Court for the Southern District of West Virginia. As the company started bankruptcy proceedings, it halted operations at its facilities in Virginia, Kentucky, West Virginia and Wyoming.
