Appalachian Fuels was an active surety account for Cumberland Surety/Lyndon Property Insurance Company. Appalachian Fuels filed for bankruptcy with $128-million in bonded liabilities.
NewBridge Services had inspected all Appalachian mine sites over a 15-year period, so NewBridge was uniquely positioned to provide expert analysis and advise all parties in what became a methodical reduction of liability.
NewBridge entered into a contract with the bankruptcy trustee to actively manage the completion of reclamation obligations by leveraging its own work force and contracting with third party operators. Working with several state regulatory agencies, NewBridge systematically analyzed 18 separate mine sites.
The result: Liability was eliminated with no loss to the surety.
NewBridge used various forms of collateral held by the surety company and negotiated the transfer of large portions of liability by incentivizing other operators to assume responsibility for problem sites by replacing bonds. No surety bonds were forfeited, and NewBridge successfully reclaimed hundreds of acres simultaneously across multiple states.
Thanks to skilled management and proprietary systems, NewBridge created substantial savings on the $4.8 million project. At the same time, NewBridge continually exceeded minimum work standards to the satisfaction of district, regional, and state level regulators and inspectors. The work included slide repair, pond removal, tree planting, ditch design, and general earthwork.