Lexington, Ky. - Longtime coal operator Larry Addington has sought Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Eastern District of Kentucky, according to a court filing.
Addington, who made a name for himself in the coal industry as an independent operator in the 1990s and into the 2000s, filed a voluntary bankruptcy petition at the court Jan. 26, disclosing that he has assets totaling roughly $7.1 million versus liabilities of approximately $37.3 million.
One of Addington's primary companies, Appalachian Fuels LLC, has been in bankruptcy proceedings since mid-2009, when three creditors filed an involuntary petition with a federal bankruptcy court to push the coal producer into Chapter 7. Since that time, Appalachian Fuels has been selling off its assets piecemeal, including one deal with Massey Energy Co., which is now owned by Alpha Natural Resources Inc., and another with Argus Energy LLC.
Prior to the bankruptcy filing, Appalachian Fuels had employed Kentucky House Majority Floor Leader Rocky Adkins as its Director of Public Affairs.
Appalachian Fuels is part of Energy Coal Resources Inc., which Addington formed in the mid-2000s, partly from mines that used to be owned by a former Addington company known as AEI Resources Inc. Addington created AEI in the late 1990s when he bought several distressed coal companies and combined their operations. AEI, later known as Horizon Natural Resources Co., eventually went bankrupt and its assets were sold in 2004. Addington exited the company in 2002, well before the 2004 asset sales.
Among Addington's 20 largest creditors are equipment manufacturer Caterpillar Inc., which is owed $9.5 million; PNC Equipment Finance LLC, which is owed $3.7 million; Town Square Bank, which is owed $3 million; and transportation equipment lessor GATX Corp., which is owed $2.9 million. Addington also owes approximately $3.4 million to the IRS, according to the petition.
The bankruptcy court has scheduled a preliminary meeting of creditors involved in the Addington case on Feb. 29 in Lexington, Ky.