A Pennsylvania bankruptcy judge has given the green light to the $23.5 million sale of Corsa Coal Corp.’s assets, rejecting last-ditch attempts by creditors and regulators to carve out litigation claims and environmental cleanup funds.
With no other bidders stepping forward, U.S. Bankruptcy Judge Jeffery A. Deller dismissed objections from unsecured creditors and state environmental officials, approving the asset transfer of Corsa subsidiary Wilson Creek Energy to three buyers.
The ruling ends months of uncertainty for the embattled coal producer, which filed for Chapter 11 in January under the crushing weight of $42.2 million in debt and plummeting coal prices.
A Desperate Bid for Survival
Wilson Creek entered bankruptcy protection citing $20.9 million in secured debt, including a $16.3 million loan from Key Bank, along with $21.3 million in trade obligations. The company secured $15 million in emergency financing, banking on an asset sale to stay afloat.
On Thursday, Corsa’s attorney Mark Lindsey revealed that no competing bids emerged beyond:
