Cloud Peak followed up its Friday bankruptcy filing with insight on what's been going on behind the scenes. Like many assumed, the Gillette-based coal giant did seek out buyers. The company had international investment bank J.P. Morgan lead the search.
J.P. Morgan engaged with 21 potentially interested parties and only ended up with one proposal. That wasn't acted on due to significant risk.
In the past few weeks, Cloud Peak has confidentially communicated with potentially interested parties. The company is looking to sell all or nearly all of its assets.
Meanwhile, filings show Cloud Peak could run out of money by the end of this month. With no cash on hand, the company did not pay its $8.3 million ad valorem tax bill to Campbell County. The majority of those funds go to Wyoming's state-wide education fund. Gillette Senator Michael Von Flatern said the taxes are his biggest concern.
"We do not have a leg to stand on as far as the ad valorem tax which is about $8 million that they owe us presently. And it's growing every day of course as they mine coal," he said.
The company owes $3.3 million to Converse County.
Cloud Peak's first day hearing takes place Tuesday, May 14 at 11:00 am Mountain Time.
