After filing Chapter 11 bankruptcy in Delaware, Cloud Peak Energy in Wyoming has received court approval to proceed with reorganization. The company filed bankruptcy last week.
Colin Marshall, President and Chief Executive Officer of the Powder River Basin operation said it will allow the company to continue operating as normal as assets are being sold.
The Court granted Cloud Peak Energy interim approval to access $10 million of up to $35 million in debtor-in-possession financing. The $35 million DIP financing, combined with the Company’s cash on hand and funds generated from ongoing operations, is expected to provide sufficient liquidity for the Company to continue operating in the ordinary course during the sale process.
In addition, Cloud Peak Energy received Court approval to, among other things, continue payment of employee wages, salaries and benefits without interruption, and to pay vendors, suppliers and other providers essential to the Company’s business in full for goods and services provided after the filing date. The Company also received approval to continue entering into and fulfilling orders under sales contracts with customers in the ordinary course of business.