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Last updated on Thursday, July 3, 2014
Vectren announced Tuesday evening it’s selling its coal-mining subsidiary that employs more than 800 coal miners to a Southern Indiana-based coal-mining company.
Vectren Fuels, based in Evansville, will be sold to Sunrise Coal LLC, a subsidiary of Hollador Energy Company for $296 million, with capital adjustments not to exceed $325 million. The sale is expected to be completed by the end of the third quarter this year.
Vectren Fuels owns three coal mines in Southwestern Indiana that employ nearly 850 coal miners. They include two mines operated by Black Panther Mining in Oaktown, near Vincennes, and one in Petersburg operated by Five Star Mining.
The jobs of those 850 miners are not guaranteed at the mines after the sale is finalized, though. Vectren notes Sunrise Coal will start the hiring process soon and that all miners currently employed will be considered for hire.
A news release from Vectren states now is the right time for the company to shed its subsidiaries as the energy company grows its infrastructure. The proceeds will be used to retire $200 million in outstanding Vectren Capital bank term loans and pay down outstanding short-term debt, according to the news release
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