9/8/2023 0 Comments Little bit later on![]() Hoops resigned as CEO, so he did.ĬT: You detail this pattern of bankruptcy with companies like Black Jewel and you outline how this can be a strategy – you call it the ‘game of musical mines.’ Break this down for us and what this kind of pattern looks like. But the upshot was lenders and the bankruptcy judge wouldn't go along with a temporary financing plan for Black Jewel unless Mr. ![]() There was litigation over that that was later settled. ![]() But some things came out during the bankruptcy hearing about payments that were flowing from Black Jewel to a different company that Mr. Once the Chapter 11 was filed, what often happens in a reorganization is you get some sort of financing to allow the company to continue as a ‘going concern’ while it reorganizes. There was a lot of particular chaos around the Black Jewel bankruptcy, partly because there were some problems getting financing. ![]() Of course, Black Jewel’s bankruptcy came as part of a massive wave of coal industry bankruptcies. The reality is there were lots of indications that Black Jewel was having problems in the run up to the bankruptcy. One fellow we talked to had gone on vacation with his family to Myrtle Beach and his paycheck bounced and they had to come home from vacation. Most famously in eastern Kentucky, a number of miners staged a sit down protest on the railroad tracks to block a coal train. There were allegations made in court that they didn't receive any warning of their layoffs or the closures of their mines. KW: In a number of operations, workers showed up for their shift and were told to go home. Tell us about what that looked like over in West Virginia and Kentucky. I'm thinking back just in Wyoming, there were about 600 workers left in limbo not knowing if they had jobs and paychecks – and benefits weren't coming through. was looking at the fallout from Black Jewel, which was widely reported on and somewhat notorious, I suppose, in some people's minds, as an example of coal industry bankruptcies.ĬT: It sounds like, from your reporting, it was a little bit of a surprise. That's kind of where our story picked up. He became quite a philanthropist.īut times got tough for Black Jewel as they had for a lot of the coal industry, and Black Jewel landed in bankruptcy in July of 2019. But, he actually left there to found his own operations and was very successful. He started off in the coal industry but went to school in the evenings and rose up to a management position in a large coal company. But early on he was clearly a smart, striving sort of person who wanted to go places. Growing up, his father was an abusive alcoholic. Ken Ward Jr: Jeff Hoops, the founder of Black Jewel LLC, grew up in West Virginia and had a hard time. You reported that the founder Jeff Hoops was somewhat of a local hero in West Virginia prior to the bankruptcy. ![]() But it sounds like that wasn't always the case. In the last few years, it's earned a pretty troubled reputation. This transcript has been lightly edited for clarity and brevity.Ĭaitlin Tan: For those who haven't followed along, tell us a little bit about Black Jewel. He spoke with Wyoming Public Radio’s Caitlin Tan. He recently published a story for ProPublica about the company’s mishandling, specifically focusing on Kentucky and West Virginia. is based in West Virginia and has followed the story of Black Jewel. The bankruptcy also allowed the company to abandon a lot of mine sites, which it turns out is a pattern and even a strategy for some coal companies, particularly in the Appalachian region.Īward-winning journalist Ken Ward Jr. Many miners in all four states had no notice and were left without paychecks or jobs. Black Jewel was a coal company that operated in four states – Kentucky, Virginia, West Virginia and Wyoming – and this July marked the fourth anniversary of the company filing for bankruptcy. ![]()
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