Coal giant Murray Energy, big Trump backer, files for bankruptcy

The largest privately owned U.S. coal mining company is seeking bankruptcy protection.

Ohio-based Murray Energy filed for Chapter 11 bankruptcy reorganization Tuesday. The company seeks to restructure nearly $3 billion in debt and obtained some $350 million in new loans to continue operating during the bankrupcty proceeding, Bloomberg News reported. 

Former CEO Robert Murray said the move was necessary to access liquidity and best position the company for long-term success. Murray has been one of the most prominent coal executives to press the Trump administration for greater federal protection of the struggling industry.  

A March 29, 2017, photo obtained by the Associated Press shows Robert Murray of Murray Energy, right, meeting with Energy Secretary Rick Perry in Washington.  Simon Edelman / AP

Many coal companies are struggling as communities have switched from the fossil fuel to less-polluting renewable energy or natural gas.

Several other major coal producers have filed for bankruptcy protection this year, including Blackjewel Mining in West Virginia and Cloud Peak Energy in Wyoming.

Blackjewel miners protest after bankruptcy leaves them without pay

Robert Murray is a major backer of President Donald Trump, who has made saving coal jobs a key part of his campaign. Murray hosted a fundraiser for Trump in July, which had been expected to raise $2.5 million.

The company announced Tuesday that Murray’s nephew Robert Moore will replace Murray as CEO.