Revelation Energy files Chapter 11 bankruptcy

Published 11:28 am Wednesday, July 3, 2019

One of the largest coal producers in the nation will be shut down for at least two weeks. Revelation Energy, LLC., along with its affiliate Blackjewel, LLC., filed for Chapter 11 bankruptcy on Monday.

According to the Lexington Herald-Leader, Revelation Energy is one of the nation’s largest coal producers, with mines in Kentucky, Virginia, West Virginia and Wyoming. These mines provide roughly 1,100 jobs across three states, with an additional 600 employees in Wyoming mines.

Cumberland Mayor Charles Raleigh told the newspaper that at least two coal miners reported the mines near Cumberland will be shut down for at least two weeks.

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Jeff Hoops, owner of Revelation Energy, filed for an affidavit on Monday, blaming adverse market conditions that began in 2012 for the company’s financial struggles.

Revelation Energy and Blackjewel allegedly owe millions to state and federal agencies, including $60 million to the U.S. Department of the Interior and $6 million to the Kentucky State Treasurer, according to the Herald-Leader.

In addition, the two companies have private debtors in Kentucky: $4 million to Aquatic Resources Management in Lexington, $3.7 million to Jones Oil Company, Inc., in Pikeville, and $2.2 million to Republic Superior Products, LLC., in Lackey.

According to reports from the U.S. Office of Surface Mining Reclamation and Enforcement, Revelation Energy has been the top violator of reclamation and environmental rules in Kentucky for the past three evaluation years.

For the period of 2017-18 alone, OSMRE regulators issued the company a total of 134 notices of non-compliance of federal rules, citing 259 violations of standard.

Hoops’ filing comes just weeks after Cambrian Coal, LLC., filed for Chapter 11 bankruptcy. Cambrian Coal is another company with several mines in Kentucky and Virginia.

On Wednesday, many of the miners who were laid off as a result of the bankruptcy reported having their checks deducted from their bank accounts by Revelation Energy. They were told by their banks that it was a “charge back” and they would be unable to cash their checks.

Renee Cobb Cornette, a wife of one of the miners, said in a post on Facebook that her husband’s check was “sent back to the bank and unable to be cashed.”

“When a company files bankruptcy and mismanages their money while refusing to abide by the law, it’s so easy to want to pay them, but we forget in the process the faces behind the billionaires: The hard-working people who do honest work to provide for their families,” Cornette said.

Cornette, like others, went on to express her disappointment about Hoops’ business decisions.

“But ultimately, he isn’t going to feel the effects of this. But the miners? That’s another story,” Cornette said.

Harlan County Judge-Executive Dan Mosley also announced on Wednesday that the new financing agreement proposed by the company was rejected by a federal bankruptcy court. The court suggested Revelation Energy must now explore other alternatives.

“Many coal miners’ accounts have been overdrawn as a result of these checks not clearing the banks,” Mosley said. “Some folks are on vacation hundreds of miles from home… Some are trying to figure out just how they’re going to be able to get back home. This is reprehensible. It makes me sick for these folks.”

“The company did not provide, and still has not provided, any written notice to local government that anyone would be heading to the unemployment line,” Mosley said in his post. “I am told that the state was not notified of this action as well.

“The miners deserve an explanation and deserve to be paid for the work they performed for this company. Sending folks to the unemployment line is one thing. However, the way this situation has been handled by the owner of the company is not professional, it’s not acceptable and it’s not above board. The coal miners held up their end of the bargain for an honest day’s work, now it’s time for the other end to be honored as well.

“If it’s not in a timely manner. State officials with enforcement authority need to intervene in this situation. Please pray for these families that have been impacted by this awful situation.”