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Metallurgical coal producer Corsa Coal and each of its subsidiaries have filed for voluntary chapter 11 relief in the U.S. Bankruptcy Court for the Western District of Pennsylvania. A commitment for $15 million in debtor-in-possession financing provided by KIA II will support operations during the process.<\/p>\n\n\n\n
The Corsa Group has also filed various \u201cfirst day\u201d motions with the U.S. Bankruptcy Court, seeking customary relief that will enable them to continue operating without meaningfully disrupting their normal course of operations, and expect to file with the Ontario Superior Court (Commercial List) under the Companies\u2019 Creditors Arrangement Act (Canada) for recognition of the Chapter 11 proceedings.<\/p>\n\n\n\n
\n\u201cThis difficult decision to seek bankruptcy protection is one that has weighed heavy on Corsa\u2019s board of directors and its management, but we believe it is the best course of action to preserve and maximize value for stakeholders and to preserve the jobs of Corsa Group employees,\u201d President and CEO Kevin M. Harrigan said. <\/p>\n<\/blockquote>\n\n\n\n
\u201cCustomary motions have been filed with the U.S. Bankruptcy Court to support the continuation of our daily operations for customers, employees and vendors and we expect to continue to deliver the metallurgical coal that our customers depend on.\u201d<\/p>\n\n\n\n
The Corsa Group intends to sell its assets pursuant to Section 363 of the U.S. Bankruptcy Code. It has operations in Pennsylvania and Maryland employing more than 300 employees. <\/p>\n\n\n\n