White Stallion energy details big layoffs
EVANSVILLE, Ind. (Inside INdiana Business) — White Stallion Energy LLC says the ongoing COVID-19 pandemic and the inability to secure additional capital have led the company to file for bankruptcy and lay off 338 workers.
In a notice to the state, the coal company says it has shut down its six mines and three offices in southern Indiana and southern Illinois. The entire workforce was laid off last week.
In addition to the financial challenges, the company says it also faced untimely equipment failures, which led to the inability to fulfill contracts and subsequently incurred financial losses.
“The company also has been actively and earnestly working to negotiate the terms of the long-term supply contract with one of its major customers and continued in its efforts do so right until this holiday (Thanksgiving) weekend,” said the company in a statement. “Although the company believes it could finalize a contract before the company ran out of the operating capital, over the Thanksgiving holiday, it became clear that such a supply contract would not be finalized in a time-frame necessary to avoid the idling of operations and the termination of employees.”
White Stallion says falling demand for U.S. coal has also contributed to the company’s challenges.