Bankruptcy helps Blackjewel avoid paying $1-million to Kentucky, Labor Cabinet filed to change that – WYMT News

CHARLESTON, WV. (WYMT) - Kentucky's Labor Cabinet filed paperwork in bankruptcy court in Charleston, West Virginia on Oct. 17 to allow them to pursue money owed to the state.

The largest of the two fines asks Blackjewel to pay $705,000.

When Blackjewel filed for Bankruptcy on July 1, an automatic stay immediately kicked in.

An automatic stay stops almost all civil lawsuits filed, including those from government agencies like Kentucky's Labor Cabinet.

What the cabinet has filed for is a motion to modify the automatic stay, attempting to make Blackjewel pay the fine in accordance with the Kentucky Revised Statute.

The statute reads that "Any firm, individual, partnership, or corporation that violates KRS 337.020 shall be assessed a civil penalty of not less than one hundred dollars ($100) nor more than one thousand dollars ($1,000)," and goes on to add that each is considered a separate offense.

The state cannot collect the fine from Blackjewel as long as the automatic stay is in place since it is a "civil penalty."

The document reads that the company employed 705 people to operate mines in Kentucky, which is where the state got the amount of $705,000.

The Commonwealth has filed various suits since July against Blackjewel, including the failure to "furnish a performance bond" in the amount of $366,500.

Tuesday afternoon a judge responded to the motion saying that "good faith" negotiations had begun taking place between the two parties.

The hearing for the motion would have been Wednesday at 2:00 p.m., but it has since been moved to November 13 to allow negotiations to continue.

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Bankruptcy helps Blackjewel avoid paying $1-million to Kentucky, Labor Cabinet filed to change that - WYMT News