James River Coal Prices Drop, Files for Bankruptcy Protection

Reuters reported yesterday that James River Coal has filed for bankruptcy protection after struggling against widespread moves towards cheaper natural gas in the U.S. and increasingly strict greenhouse gas emissions regulations. Prices fell by more than 40 percent on Monday.

According to the publication:

James River and its units filed voluntary petitions for reorganization under Chapter 11 in the bankruptcy court for the Eastern District of Virginia Richmond.

The company also said it would enter into a $110 million debtor-in-possession financing facility with several large financial funds.

James River CEO, Peter Socha, commented:

The coal markets in the U.S. have changed dramatically during the past several years.

Click here to read the James River Coal (NASDAQ:JRCC) press release