Exporter agrees to broker coal for troubled McCall firm Deal needs the approval of U.S. bankruptcy judge

September 25, 1990|By Jon Morgan | Jon Morgan,Evening Sun Staff

Coal ARBED International Trading of Baltimore, a major coal exporter, has reached an agreement with the troubled Jno. McCall Coal Export Co. to act as a broker for up to 2 million tons of coal a year for foreign customers of McCall.

McCall, one of the nation's top coal exporters and one of the largest privately owned companies in Baltimore, filed this month for protection from its creditors under Chapter 11 of the U.S. bankruptcy code. A few days earlier, creditors had filed for involuntary liquidation under Chapter 7.

Coal ARBED has reached an agreement with McCall to take over all of McCall's outstanding export contracts, which total 1 1/2 to 2 million tons a year for several years. The agreement was filed last week in bankruptcy court and must be approved by the judge, said James Roberts, president of Coal ARBED, a subsidiary of ARBED, a Luxembourg-based steel company.

The contracts would nearly double Coal ARBED's annual export trade, and give it the opportunity to prove its capabilities to new customers, Roberts said.

"We're going to do everything we possibly can to make sure they are satisfied," Roberts said. The company's headquarters staff of eight would probably add another two workers if the contracts are approved, he said.

McCall was a major shipper through the Port of Baltimore and Roberts said, "If we're successful, we would continue that."

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