Murray Energy Corp., the nation’s largest privately owned coal business, is moving forward with a plan to hand itself to its senior creditors after failing to attract competing offers for its assets in bankruptcy, WSJ Pro Bankruptcy reported. The St. Clairsville, Ohio-based coal producer said on Friday in a court filing that it received no other qualified bids for its assets and canceled a proposed chapter 11 auction that had been scheduled for later this week. Murray will instead give control to a lender group that has agreed to forgive $1.2 billion in debt. The group’s offer covers Murray’s thermal and metallurgical coal business as well as its equity interests in coal producer Foresight Energy LP, which also is in bankruptcy, and its interest in commodity trader Javelin Global Commodities Holdings LLP, according to court papers. The proposal can be challenged by other Murray creditors or stakeholders and must be approved by Judge John E. Hoffman Jr. of the U.S. Bankruptcy Court in Columbus, Ohio. A hearing to consider approval of the sale is scheduled for June 2.
