Lily Group coal mine assets in Indiana up for auction on Jan. 27

Bankruptcy court approves auction process for Indiana coal producer's assets

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A U.S. Bankruptcy Court judge has set a Jan. 27 auction, and Jan. 29 hearing to consider the results of that auction, which will cover most of the assets of Lily Group, which controls the idled Landree deep coal mine in Indiana.

Lily Group, which had only recently developed the Landree mine, sought Chapter 11 bankruptcy in September 2013. In a Jan. 10 order, the judge in the U.S. Bankruptcy Court for the Southern District of Indiana approved an amended version of the auction plan.

The judge’s order noted that Indianapolis Power & Light, which has a contract to buy coal from Lily Group, can object to any plan to assume this contract. U.S. Energy Information Administration data shows deliveries last year by Lily Group out of Landree to the utility’s Harding Street power plant under a contract to expire in December 2014.

Among the assets to be sold at auction include mining equipment, mine permits and a 2010 coal lease with the Indiana Rail Road. The company said its assets including the previously operational Landree deep mine, which has been maintained since being idled, and an unpermitted coal reserve under the Landree mine.

Lily Group was founded in 2008 and was acquired in 2012 by VHGI Holdings. U.S. Mine Safety and Health Administration data shows that the Landree mine, located in Sullivan County, got a production start in the fourth quarter of 2012 and produced a total of 21,674 tons in the first three quarters of 2013. 

Barry Cassell
About the Author

Barry Cassell

Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.

Barry can be reached at barryc@pennwell.com.

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