The company said it intended to use the process to continue implementing a turnaround plan aimed at addressing its challenges in a varying coal mining industry.

James River expects its mining operations and customer shipments to continue in the ordinary course throughout the restructuring process.

It will enter into a $US110 million ($A118 million) debtor-in-possession financing facility with several large financial funds.

The financing generated from JRC’s ongoing operations will be used to support the business during the restructuring process.

JRC has filed numerous motions with the bankruptcy court in order to ensure the maintenance of normal operations, including requesting authorisation to continue paying employee wages and providing health care and other benefits.

The company also asked for authority to continue existing customer programs and intended to pay suppliers in full for goods and services provided after the filing date of April 7, 2014.

“We took this action to restructure under Chapter 11 because it will allow us to adjust the balance sheet and improve our liquidity in a controlled and definitive manner,” James River CEO Peter Socha said.

“We will also continue to explore and evaluate potential strategic alternatives for the company, such as a capital investment through a plan of reorganisation or a sale of one or more portions of the company.”