The US District Court for Delaware approved the sale of substantially all of Cloud Peak Energy’s assets, clearing the way to transfer the company’s Montana and Wyoming mines to the Navajo Transitional Energy Company (NTEC).
Cloud Peak Energy began searching for a buyer in late 2018 after entering bankruptcy proceedings.
In August, NTEC was selected as the most qualified bidder. Since then, NTEC has been working with Cloud Peak.
“We are pleased to have this final order approved and look forward to assuming operations in Montana and Wyoming in mid-October,” said Clark Moseley, CEO NTEC. “As a company we have a solid record of returning mines to profitability and doing so as an industry leader in safety and reclamation.”
Together the Spring Creek Mine in Montana and the Antelope and Cordero Rojo Mines in Wyoming, employ about 1,200 jobs.
NTEC plans to retain the employees at the mines. The purchase of the mines will also provide an increased revenue base with which to support the Navajo Nation, a release stated.
Cloud Peak Energy struggled with high levels of debt created by borrowing to finance certain acquisitions.
NTEC is a single-member limited liability company, organized under the laws of the Navajo Nation, that owns the Navajo Mine, located south of Fruitland, New Mexico.
The mission of NTEC is to be a reliable, safe producer of coal, while diversifying the Navajo Nation’s energy resources. NTEC is 100 percent owned, but not controlled, by the Navajo Nation.
For more information, visit www.navajo-tec.com.