CHARLESTON, W.Va. — One of Gov. Jim Justice’s coal companies told a federal court Friday that it can’t pay roughly $750,000 as ordered by the court primarily to maintain collateral for financial obligations to a Charleston-based workers’ compensation and employers’ liability insurance provider.
Southern Coal Corp. told a federal court in Virginia it “has no present ability to pay” and comply with its order to pay $503,985 to BrickStreet Mutual Insurance Co. plus another $245,929 in attorneys’ fees.
Roanoke, Virginia-based Southern Coal admitted in Friday’s filing it has failed to reimburse BrickStreet for claims payments since 2017, failed to pay BrickStreet’s invoices from May 2019 through June 2020, isn’t actively mining coal, has no income or open bank accounts, and lacks assets which can be liquidated.
Southern Coal noted September 2022 testimony from Executive Vice President Stephen Ball that he had no estimate for when the company would be in a position to start paying its debts.
The company said its inability to pay should shield it from a Nov. 3 motion to hold it in contempt of court filed by BrickStreet for not complying with a Sept. 28 court order to pay the collateral maintenance money and attorneys’ fees within two weeks.
The order held that Southern Coal had failed to satisfy its obligations under a 2015 contract with BrickStreet for workers’ compensation and employers’ liability insurance.