Helper mine owner reworks Chapter 11

Hidden Splendor Resources Inc., the owner of a coal mine in Helper, Utah, confirmed a Chapter 11 plan this week in its second trip through bankruptcy court.

The plan reinstates and modifies the $5.9 million secured loan held by Zions First National Bank. Unsecured creditors with claims of $3.4 million are to receive between 50 percent and 70 percent.

The plan is made possible by a $2.25 million contribution from the parent America West Resources LLC. The mine filed under Chapter 11 in October 2007. Reddi Brake Supply Corp. purchased the mine for stock in March 2007 from owners who bought the property in a March 2003 bankruptcy sale.

The mine was one of the coal-producing properties owned by Lodestar Energy Inc. when creditors filed an involuntary bankruptcy petition in March 2001.

The new case was filed in U.S. Bankruptcy Court in Reno, Nev.