An offer by Luscar to buy the Balmer and Greenhills coal mines in southeastern British Columbia was blocked by a creditor of the mines’ former owner, bankrupt Westar Mining.
The Bank of Montreal opposed the sale on the grounds that a better offer was made by Teck (TSE), which already operates two coal mines in northeastern British Columbia. The Teck offer, however, is only for the Balmer mine, where the Bank of Montreal is a secured creditor. Luscar was the only company seeking to buy both mines.
The workforce at Greenhills had also opposed some of the conditions of a proposed contract between Luscar and a local of the United Mine Workers of America which represents miners at Balmer.
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