FARMINGTON, N.M., Oct. 24, 2019 /PRNewswire/ -- Today, the corporate transaction that Parsons Behle & Latimer (Parsons) was instrumental in negotiating and structuring between client Navajo Transitional Energy Company LLC, (NTEC) and Cloud Peak Energy Company Inc (Cloud Peak) closed. The transaction, which received bankruptcy court approval Aug.19, and final court approval Oct. 22, 2019, empowers NTEC to purchase all Cloud Peak mining assets, making NTEC the third-largest coal producer in the country. Since the Aug. 19, initial sale order approval, NTEC has worked with Cloud Peak and its creditors to produce a seamless transition.
NTEC has assumed ownership of the Powder River Basin, Wyoming Antelope and Cordero Rojo mines, which are the third-and fifth-largest coal mines in the country, respectively as well as the Spring Creek mine in Montana. Through the bankruptcy buyout, the assets were acquired free of significant debt burdens. NTEC says it will return the Montana and Wyoming mines to profitability while retaining employees and sustaining taxes and royalties to the regions. The mines employ approximately 1,200 employees and provide $230 million in taxes and royalties to their respective states.
Nora R. Pincus, Parsons' lead attorney on the project says, "We had very positive expectations for this closing. Our client has a strong history of environmental stewardship and successful business oversight. This venture will be no different. We look forward to their continued success with these mines and are pleased that this complex transaction ended well for our client, for the environment and for the respective regional economies."
The Parsons team included Bruce H. White and Michael R. Brown, who provided strategic guidance on the bankruptcy, financing and corporate structuring aspects of the transaction; Kevin W. Johnson, who handled the significant mining, HSR and merger and acquisition issues; Joseph "J.D." Kesler and Shane L. Hanna who handled many of the core corporate transaction issues; Matthew D. Cook and Emily D. Holt on indenture financing and legal opinion matters. Others assisting with the transaction included A. Bradley Randall, Christina M. Jepson, Didi Bowles and Madeline Malmquist. Parsons also worked closely with Schwabe, Williams and Wyatt who managed the regulatory and permitting matters as well as advising on Native American law issues.
Since 1882, Parsons has been a legal service leader in the mining industry, and today, is one of the most experienced natural resource management and corporate transaction law firms in the U.S.
NTEC is a wholly-owned limited liability company of the Navajo Nation, which owns and operates the Navajo Mine, located on the Navajo Nation, south of Farmington, New Mexico. NTEC's mission, emphasizes being a reliable, safe producer of coal while diversifying the Nation's energy resources to create economic and environmental sustainability for the Navajo people. The Navajo Mine has been supplying coal to the Four Corners Power Plant for the past 50 years.
About Parsons Behle & Latimer
Established in Salt Lake City in 1882, Parsons Behle & Latimer's (Parsons) team of more than 150 attorneys delivers an in-depth range of experience to its clients in the following industries: agriculture; banking and financial services; construction; cybersecurity and data privacy; energy; dental; healthcare; manufacturing; mining; natural resources; oil and gas; resorts and recreation; and technology. One of Utah's largest law firms, Parsons subscribes to a progressive philosophy of legal service delivery and remains on the forefront of business and industry trends to help clients accelerate their business objectives. Headquartered in Salt Lake City, Parsons has offices in Lehi, Utah; Boise and Idaho Falls, Id.; Reno, Nev. To learn more, visit www.parsonsbehle.com.
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