KNOXVILLE, Tenn (WVLT) -- National Coal Corporation is selling it's Kentucky coal operation.
The Knoxville-based company announced today it reached an agreement with Xinergy Corp., to sell it's Kentucky Straight Creek operations, for approximately $11 million in cash.
The Company intends to use the sale proceeds to repay its $10 million senior secured term loan scheduled to mature in December 2008.
"This sale will facilitate a number of positive changes for us," said National Coal President and CEO Daniel Roling. "It will improve liquidity, strengthen our balance sheet with the early repayment of debt, and allow us to focus our production activities on those properties that we believe give us greater flexibility to react to the growing demand for coal we expect to experience this year.”