A publicly traded Knoxville energy company has filed for bankruptcy protection and drawn an investment from China.

Americas Energy Co is a coal mining firm that is headquartered on North Peters Road, and operates in Southeastern Kentucky. Its stock trades on the OTC bulletin board.

Last week, AEC filed for Chapter 11 bankruptcy protection, saying it has estimated assets in a range between USD 500,000 and USD 1 million, and estimated liabilities that fall in a range between USD 1 million and USD 10 million. Company officials and an attorney did not return calls seeking comment.

The Chapter 11 filing was made on December 7, but a filing with the Securities and Exchange Commission that announced the move wasn't filed until December 13. That regulatory filing said the company and a subsidiary will continue to operate their business as debtors in possession, and said the bankruptcy move was aimed at an orderly disposition of assets owned in Kentucky and a reorganization of its financial obligations and capital structure.

The same filing said AEC has entered an agreement with a Chinese firm called Beijing Guohua Technology Group, which has agreed to provide $6 million in exchange for a 30% stake in the company. That deal is contingent on AEC acquiring certain assets from a Virginia company called Alpha Natural Resources for USD 71 million, and the filing said AEC has entered a letter of intent agreement to do so.

The filing said that, according to the Virginia company, the assets are a metallurgical property containing approximately 44,000 acres of leased property, two permitted deep mines, a permitted coal processing facility with a permitted impoundment area and a 40 barge terminal on the Tennessee River.

(Sourced from Knoxville News Sentinel Co)