Power play: Big investment firm escapes Blackjewel 'unscathed'
Though Wyoming miners and local businesses struggle with unpaid debts and though tens of millions of dollars in state and county revenue could be wiped off the books, not all those owed money by Blackjewel will walk away empty handed.
Riverstone Holdings LLC, an energy investment firm with $39 billion in capital and offices in financial centers around the globe, may be the bankruptcy winner. Blackjewel owed the firm $34 million when it entered bankruptcy, from a loan made to the mining company in July 2017.
Filings in bankruptcy court document how Riverstone maneuvered to protect its interests, propping Blackjewel up with a $5 million loan to prevent the company’s liquidation, then making deals in the bankruptcy auction to recoup its investments. If those deals hold, Riverstone could ultimately walk away from Blackjewel with $40 million, according to court filings.
Riverstone declined to answer emailed questions from WyoFile, including whether the investment firm earned any profit from the bankruptcy.
Read more: https://www.wyofile.com/power-play-big-investment-firm-escapes-blackjewel-unscathed/
Cross-posted in the General Discussion forum.