Blackjewel LLC

The agreement is subject to approval by Contura's board of directors and U.S. Bankruptcy Court in West Virginia.

The auction, originally scheduled for Thursday, will take place 11 a.m. EDT Aug. 15 in New York.

Workers hope to push the judge to make sure they're paid amid the bankruptcy and the sale.

Federal bankruptcy judge Frank Volk approved the motion Friday morning.

On Monday, a Kansas utility company alleged that Blackjewel has not been providing it with adequate coal supplies to generate electricity.

The loans can also be used for essential firefighting personnel to the extent required to extinguish active fires at Blackjewel's mines.