Lawyer for bankruptcy minister Blackjewel LLC told a federal judge late Tuesday afternoon that it had secured new funding – a significant development after the former lender relied on a $ 20 million loan earlier this week.
"The debtors have obtained additional funding from a new third party that is substantially final with respect to the terms and is subject to the third party's final internal approval, which is expected by (Wednesday) morning," the company said in court documents.
If the agreement is approved by the judge , the company will avoid having to resort to Chapter 7 bankruptcy, which will result in the liquidation of two Wyoming mines ̵
The hearing proposed in the trial, allegedly Blackjewel's lawyers, was something of an ultimatum that the company said that after hours worked to secure a lender, "no other option" was viable.
" should be clear after the hearing July 1, the debtors are at the downturn to conversion to chapter 7, "court documents said." If these debtors convert to chapter 7, the mines will be Abandoned, equipment will be stolen or destroyed, and the value of the debtor's assets will be destroyed. As it should be clear after the events of the hearing on July 1, these debtors are out of options. Without the DIP funding now proposed, these Debtors cases will convert to Chapter 7 issues and great value will be lost. "
The Emergency Negotiation – which was announced Tuesday afternoon – began at 2:30 am Mountain time. Lawyers for the company stated at 5:30 pm that the hearing was still ongoing. From the press time it had not been published any word.
Immediately the government's response
This week's news immediately put Wyoming's government to the test, which led to an all-hands-on response from many government agencies working to reduce one of the state's largest daily job losses since March 2016, when the state's two largest mines ended of more than 460 workers