Energy company demands payment

by John O'Brien |
Oct. 6, 2006, 2:40am

CHARLESTON - Central West Virginia Energy Co. has filed a lawsuit against Wheeling Pittsburgh Steel Corp., alleging it is owed almost $2 million because of a late check.

The case was filed Sept. 26 in Kanawha Circuit Court and describes a 10-year coal supply agreement the two companies had.

According to Central, the original agreement provided it would sell Wheeling Pittsburgh high volatile metallurgical coal from 1993-2003.

But in November 2000, Wheeling Pittsburgh filed a petition for relief under Chapter 11 of the United States Bankruptcy Code, and two years later the two sides worked out a payment plan for the unpaid amount of $7,205,515.56, the complaint says.

After the bankruptcy court approved the plan, Wheeling Pittsburgh paid monthly installments of approximately $120,000, the complaint says.

It adds that September's payment was due Sept. 2, but Central received a check dated Sept. 6. Pursuant to terms of the plan, Central says it is now immediately owed the remaining $1.6 million.

Wheeling Pittsburgh has emerged from its bankruptcy proceedings and has said it has honored all its obligations.

James Walls of Spilman, Thomas and Battle in Morgantown is representing Central.

Judge Louis Bloom has been assigned the case.

Kanawha Circuit Court case number 06-C-1999




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