West Virginia-based coal mining company White Forest Resources filed for Chapter 11 bankruptcy protection in Delaware, revealing nearly $79 million in debt. The filing, made late Friday, cites ongoing struggles with production setbacks and shipping disruptions. As part of its restructuring efforts, the company plans to sell one of its two coal mines before the end of April.
Operational Setbacks and Financial Woes
White Forest Resources reported that a series of equipment failures, landslides, and blizzards in late 2024 severely impacted its operations, slashing production and stalling coal shipments. These challenges struck just as the company was beginning to recover from earlier equipment breakdowns and pandemic-related market disruptions.
The company operates two mines in West Virginia: South Fork Mine and Raven Crest Mine. According to court filings, White Forest began searching for a buyer for Raven Crest Mine in October 2023 and has since secured a stalking horse bid for the asset.
Debt Load and Financing Efforts
White Forest Resources disclosed a $58.2 million secured debt burden alongside $20.7 million in unsecured trade debt, in addition to lease obligations and disputed state tax claims. To navigate its Chapter 11 process, the company is seeking $15.3 million in debtor-in-possession (DIP) financing, including $8.3 million in new funds and a $7 million rollup of prepetition debt.
