TORONTO, March 10 /CNW/ - As announced by Coalcorp Mining Inc. ("Coalcorp" or the "Company") (TSX-CCJ) on March 4, 2010, a hearing occurred on March 9, 2010 at the United States District Court for the Southern District of New York (the "Court") to consider arguments under a proceeding commenced by AES Gener S.A. (the "AES Proceeding") seeking a temporary restraining order and preliminary injunction requiring Coalcorp's subsidiary, Compania Carbones del Cesar ("CDC") to retain a minimum of USD$30,747,000 from the proceeds of the previously announced proposed sale by CDC of the La Francia mine and related infrastructure assets to a subsidiary of The Goldman Sachs Group, Inc. (the "Proposed Transaction") upon the successful completion of the Proposed Transaction. As announced on March 4, 2010, the Court issued a temporary standstill order on that date pursuant to which the Proposed Transaction could not close prior to the conclusion of yesterday's hearing.
The Court deferred making a final ruling with respect to the AES Proceeding at yesterday's hearing and ordered that the parties reappear before the Court on March 15, 2010 at 10:30 a.m. (EST).
As a result of the foregoing, the earliest potential closing date for the Proposed Transaction is now March 17, 2010 and consequently, Coalcorp's outstanding offer to repurchase its outstanding 12% senior secured notes (the "Offer for Notes"), which expires on the business day immediately prior to the closing date of the Proposed Transaction, will now expire no earlier than 5:00 p.m. (Toronto time) on March 16, 2010. The Offer for Notes has been filed and is available on SEDAR at www.sedar.com.
Coalcorp is currently a coal mining, exploration and development company with interests in the La Francia coal mine and related infrastructure projects and a number of coal exploration properties, all located in Colombia. Coalcorp also holds a 60% equity interest in Carbones Colombianos del Cerrejon which owns the La Caypa coal mine in Colombia. Further information can be obtained by visiting our website at www.coalcorp.ca or under the Company's profile at www.sedar.com.
Forward Looking Statements Disclaimer
Statements made in this news release may be forward-looking and therefore subject to various risks and uncertainties. Certain material factors or assumptions are applied in making forward-looking statements and actual results may differ materially from those expressed or implied in such statements. Coalcorp does not undertake to update any forward-looking statements; such statements speak only as of the date made.
SOURCE Coalcorp Mining Inc.
For further information: For further information: Juan Carlos Gomez, Interim Chief Executive Officer, +57 - 1 - 658 - 5050 Ext: 9990