Source: Salt Lake Tribune

A coal mining company affiliated with the polygamous Kingston clan has been ordered liquidated by the U.S. Bankruptcy Court for Utah.

C.W. Mining Inc., which until mid-year mined coal near the base of Huntington Canyon in Emery County, was ordered into Chapter 7 after the 10th Circuit Court of Appeals upheld a lower court ruling that found it owed a Midwestern utility $24 million for coal it failed to supply.

The order by U.S. Bankruptcy Court Judge Judith Boulden represents the latest twist in the case that began in early January.

At that time, Kansas City, Mo., utility owner Aquila Inc. and two Utah companies — House of Pumps and Owell Precast of Sandy — filed a petition contending C.W. Mining wasn’t paying its debts and asking the court to place it involuntarily into a Chapter 11 reorganization.

C.W. Mining, which also conducted business as Co-op Mining Co., was ordered into Chapter 11 in late September despite its contention that it was “generally paying its debts as they became due.” Aquila subsequently requested that either a Chapter 11 trustee be put into place to take over the company, or that it be ordered into Chapter 7.

“Essentially we were seeking an independent third party to gain control of the company’s remaining assets and ensure they were distributed fairly [to the creditors],” said Chuck Caisley, spokesman for Kansas City Power & Light, which acquired Aquila in July.

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