Coal Bankruptcy Ruling Could Mean $30M Hit to Wyoming County
GILLETTE, WY. (AP) — A Wyoming county could lose out on over $30 million in mineral production taxes owed by a bankrupt coal company following a decision by a judge.
Delaware U.S. Bankruptcy Court Judge Kevin Gross ruled Campbell and Converse counties don’t have first priority when it comes to collecting from Cloud Peak Energy.
The Gillette News-Record reports the ruling could make it difficult for the counties to collect. They must wait in line behind other creditors.
Local officials say Campbell County alone could be owed $30 million or more.
Gillette-based Cloud Peak Energy filed for Chapter 11 bankruptcy in May.
The loss will be a hit for school districts across Wyoming. As much as 75% of the tax revenue goes back to the state for redistribution to districts statewide.
Information from: The Gillette (Wyo.) News Record, http://www.gillettenewsrecord.com