You are using an older browser version. Please use a supported version for the best MSN experience.

Navajo Transitional Energy Wins Bid to Acquire Cloud Peak Assets

Bloomberg logoBloomberg 8/17/2019 Melissa Cheok

(Bloomberg) -- Navajo Transitional Energy Co. has won a bid to buy “substantially all” of Cloud Peak Energy Inc.’s assets, the bankrupt coal company said in a statement Friday.

The assets to be acquired include the company’s Spring Creek, Cordero Rojo and Antelope mines as well as the Sequatchie Valley reclamation project.

Navajo Transitional Energy will acquire the assets for a consideration of $15.7 million cash payment at closing, a $40 million second lien promissory note and a 5-year term royalty on future tons produced.

The company also agreed to the assumption of pre- and post-petition tax liabilities, federal and state coal royalty payments, all reclamation obligations and as much as $20 million in post-petition accounts payables, according to the statement.

Additionally, Navajo Transitional Energy agreed to carve out certain real estate parcels, which will be marketed separately by Cloud Peak Energy.

Cloud Peak Energy’s mines will continue to operate as normal as the companies finalize the deal, Cloud Peak Energy Chief Executive Officer Colin Marshall said in the statement.

The binding bid is subject to the signing of a definitive asset purchase agreement which will require approval by the U.S. Bankruptcy Court for the District of Delaware. The transaction is expected to close in October.

Cloud Peak, once the third-largest coal company in the U.S. based on production, and 27 of its affiliates filed for Chapter 11 protection May 10 in Delaware, estimating $635 million in debts and assets of $928.7 million.

To contact the reporter on this story: Melissa Cheok in Singapore at

To contact the editors responsible for this story: Shamim Adam at, Natnicha Chuwiruch, Tracy Withers

For more articles like this, please visit us at

©2019 Bloomberg L.P.

image beaconimage beaconimage beacon