Century Mining LLC, operating as Allegheny Metallurgical, has filed a motion seeking bankruptcy court approval to implement a $6 million key employee incentive program (KEIP) aimed at facilitating the restart of its longwall mining operations. The motion was filed on January 8, 2025, in the U.S. Bankruptcy Court for the Northern District of West Virginia (Case No. 24-bk-00598).
The company, which filed for Chapter 11 protection on November 22, 2024, employs approximately 362 workers at its Longview Mine facility spanning Barbour, Harrison, and Upshur counties. The proposed KEIP would distribute bonuses to employees based on achieving specific operational milestones over an estimated 12-month period.
Under the proposed program, 25% of the incentive payments would be disbursed upon completion of re-entry into Panel #1 of the mine, with the remaining 75% paid when production restarts in Panel #3. The company argues these milestones are crucial for returning to positive margins and achieving a successful reorganization.
The bonus structure varies by employee classification, with salaried employees and those possessing special skills or certifications receiving higher weighted bonuses. The plan encompasses various employee categories, including administrative staff, mine workers, and plant personnel, both hourly and salaried.
Century Mining's Chief Restructuring Officer and financial advisor, MorrisAnderson, helped develop the incentive program, which has received approval from the company's DIP lender, White Knight Specialty Funding II, LLC.
The motion is being presented by Campbell & Levine, LLC, with David B. Salzman serving as lead counsel, alongside Supple Law Office, PLLC as co-counsel for the debtor.
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