Photo by Alex Meyer John Deskins, director of West Virginia University’s Bureau of Business and Economic Research, speaks Wednesday morning to attendees at the 2019 Wheeling Economic Area Outlook Conference at the Wheeling Island Hotel-Casino-Racetrack.

ST. CLAIRSVILLE — Officials in Belmont and Monroe Counties gave their reactions in the wake of Murray Energy filing Chapter 11 bankruptcy Tuesday and the plan to transfer assets to the newly-formed Murray NewCo.

The company is seeking Chapter 11 protection through the U.S. Bankruptcy Court, and lenders are extending the company additional financing in the amount of $350 million. That funding is expected to enable Murray to continue to pay employee wages and benefits, to pay vendors and suppliers and to keep producing coal to meet contractual obligations.

As part of restructuring efforts, founder and former CEO Bob Murray will serve as chairman of the board while longtime CFO Robert D. Moore steps up as new president and CEO.

Belmont County Commissioner J.P. Dutton, who came to the office with a background in energy, said the coal industry in general and Murray’s company in particular has been and will be an important player in the economy.

“Murray Energy’s been an economic driver for this county and this region for a long time, providing a very important product and service for the overall economy of the United States. Coal, in my opinion, needs to remain a very viable part of our energy mix. It’s the most dependable fuel we have for electric generation. I’m sad to see the news, but I’m optimistic that Murray Energy will continue producing coal in Belmont County and this region for a long time.”

“I’m not surprised, because I read in several trade publications that the bankruptcy was more or less inevitable,” Belmont County Commissioner Jerry Echemann said. “I think you have to give them some credit because they staved off bankruptcy a lot longer than a lot of these other countries.

“It’s not a good situation. It’s something I think they pretty much had to do. I don’t think they really had a choice.

“The big concern is the pension fund that covers miners and their widows and things like that, and what that’s going to do. … That’s a situation for Congress to resolve, and hopefully they’ll get some bills passed so that these folks who are owed pensions can receive them.”

Echemann remained hopeful for Murray Energy to continue thriving after the dust settles.

“I think everybody’s rooting for their eventual success. Hopefully they can come out of bankruptcy and re-establish themselves. They employ quite a few people…(and) I know Robert Murray was also very active…in charitable efforts. He helped repair our Bethesda Senior Center, and we’re very grateful for that kind of thing,” he said.

Belmont County Treasurer Kathy Kelich said the company is a significant employer. She said there are reasons to remain optimistic and hope for a successful re-organization.

“Murray Energy filed a Chapter 11, which is actually a re-organization of the debt. When people hear ‘bankruptcy’ they generally think of ‘going out of business.’ That’s not exactly what this is. This is a re-organization of the debts, and it could take years for them to figure out, so we just hope that Murray Energy makes it through their bankruptcy,” she said.

“As for the impact to the county, right now we’ve got a lot of unknowns. Murray Energy is still going to be in business. They are still going to be producing coal. There may be some changes from their day-to-day operations, but as far as an impact to the people of the valley and to the sales tax, that is a very big unknown to us right now.”

The Century Mine in Monroe County is another significant employer. Monroe County Commissioner Mick Schumacher is hoping for the best.

“Obviously that’s a big employer in the county. We certainly wish him the very best in getting this restructured, with the job that are in that area, as well as the people with pensions,” he said. “Chapter 11 is a good way to get things restructured if they are having a problem with funding right now.”

Meanwhile, he is following the news and awaiting for any fresh announcements.

“Just waiting to see how this all settles out,” he said. “I haven’t heard anything from anybody from Murray Energy yet.”