The WL Ross led group of holders of a majority of Horizon Natural Resources' second lien notes has been designated the preferred bidder for the company’s assets following their recent bid increase to $277,350,000 from $240,000,000.

U.S. Bankruptcy Court designation of the Ross Group as the preferred bidder was supported by Deutsche Bank, the unsecured creditors committee and other creditors that had previously objected to the Group. As the preferred bidder, the Ross Group would be entitled to a breakup fee of $7.2 million if another bidder prevails at the auction scheduled for August 17.

Wilbur Ross, Chairman of WL Ross & Co LLC, the New York based private equity firm, said, "We are delighted that Judge Howard has designated us as the preferred bidder and that the auction is on an appropriately fast track. We look forward to completing the acquisition promptly and restoring these coal mining properties to normal operations."

Horizon Natural Resources Co. conducts mining operations in four states at 20 locations in Kentucky, West Virginia, Illinois and Indiana.

WL Ross has substantial commitments in Central and Northern Appalachian coal through its current investments in Anker Coal and CoalQuest, both located in West Virginia. In recent years, other WL Ross investment groups have acquired major bankrupt companies including Bethlehem Steel, Burlington Industries and Cone Mills.