Wednesday, July 30, 2014

James River Coal Auction Postponed AGAIN?! $JRCC

Haven't checked the docket but saw this news release:

"James River Coal Co.'s asset sale hearing was postponed until a later date, according to a federal court docket. The auction of James River's assets, already delayed multiple times, is expected to be held at a law office in New York. If there is a successful bid, a sale hearing will take place at the U.S. Bankruptcy Court for the Eastern District of Virginia in Richmond. The July 29 notice did not say when the sale hearing would be scheduled."
Auction has been rescheduled multiple times, now they aren't even scheduling a new date. I wonder if there is virtually no interest or really no interest at all in these assets? A correspondent writes,
"If they are sold, they will probably be bought by somebody without much of a balance sheet who pays single digit millions I’d bet. No public company will touch them. To buy them, you have to view it as a deep out of the money call option on the export market for thermal coal, and hope for better times a few years from now. Will require a low price."

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