Broomfield’s Cloud Peak Energy files for bankruptcy protection

BROOMFIELD — A Wyoming-based coal company with administrative offices in Broomfield has filed for Chapter 11 bankruptcy protection.

Cloud Peak Energy Inc., along with 27 other related entities, submitted the filing Friday afternoon in U.S. Bankruptcy Court for the District of Delaware. Cloud Peak operates three surface coal mines in the Powder River Basin of Wyoming. The company listed Gillette, Wyo., as its principal place of business, but 385 Interlocken Crescent, Suite 400, in Broomfield as its mailing address and the debtors’ service address.

Cloud Peak listed assets of $928.66 million and debts of $634.99 million, including $290.4 million in secured debt securities and $56.4 million in unsecured debt securities.

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The company said in a press release announcing the bankruptcy filing that it “intends to continue a marketing process for all of its assets. Cloud Peak Energy expects its mines will continue normal operations throughout the process, safely and efficiently meeting all customer commitments.”

Colin Marshall, president and CEO of Cloud Peak Energy, said in a written statement that the company has spent several months evaluating strategic alternatives to address challenging market conditions for the coal industry.

“We believe, at this time, that a sale process in Chapter 11 will provide the best opportunity to maximize value for Cloud Peak Energy,” he said.

Cloud Peak also announced that it has obtained, subject to bankruptcy-court approval, approximately $35 million in “debtor-in-possession” financing.

Vinson & Elkins LLP is serving as Cloud Peak’s legal adviser. Centerview Partners LLC is serving as investment banker. FTI Consulting Inc. is serving as financial adviser.

Among the company’s 10 largest unsecured claimants:

• Wilmington Trust, NA, Minneapolis, bonds, $56.4 million, plus accrued and unpaid interest.
• BNSF, Fort Worth, Texas, transportation, $8.1 million.
• Nelson Brothers Mining Services, Gillette, trade vendor, $4.26 million.
• Westshore Terminals Ltd., Delta, British Columbia, Canada, port/shipping, Renaissance Technologies LLC (9.26 percent).
• Korea Line Corp., Seoul, South Korea, port/shipping, $654,002.
• Wyoming Machinery Co., Gillette, trade vendor, $639,251.
• Cummins Rocky Mountain LLC, Gillette, trade vendor, $365,669.
• Northern Production Co. LLC, Gillette, trade vendor, $322,213.
• Joy Global Surface Mining Inc., Gillette, trade vendor, $297,287.
• Esco Group LLC, Gillette, trade vendor, $295,819.

Cloud Peak’s filing lists as direct or indirect equity shareholders Cede & Co. of New York, 99.81 percent; Renaissance Technologies LLC, New York, 9.26 percent; The Goldman Sachs Group Inc., New York, 8.3 percent; Dimensional Fund Advisors LP, Austin, Texas, 8.07 percent; Kopernik Global Investors LLC, Tampa, Fla., 7.77 percent; and Blackrock Inc., New York, 6.3 percent.

Cloud Peak Energy employs approximately 1,300 workers.