Officials said a $2.5 million payment on its outstanding $50 million principal for 10% senior secured bonds did not get paid Monday as required.

Missing the semi-annual interest payment has left the company in default.

The producer said it was working with the bondholders’ representative, Marret Asset Management, to consider available options.

In late November, Cline chief operations officer Dave Stone told the Raton Range that tentative supply contracts could allow it to start work on one of its flagship mines, the New Elk complex in Colorado, during next year’s first quarter.

It declined to identify the four potential buyers or tonnage amounts requested.

Cline’s Trinidad operation has been closed since July, despite initial plans for a 60-day idle. It extended the stoppage in September.

Officials both times called the closure temporary, vowing to restart mining “pending improved market conditions”

“Everything is right to reopen,” Stone told the paper at the time.

“I have redone the whole mining plan on a mining engineering basis.”

In July, just days before the idle announcement, Cline confirmed a 59% jump in the measured and indicated resources at New Elk.

Cline said the updated estimates for the complex in Trinidad showed 618.9 million tons of measured and indicated coal resources, a jump of 230.4Mt.

New Elk’s inferred coal resources total 104.5Mt, an increase of 81.8Mt, or a spike of 360%.

The complex comprises the Green, Loco, Blue, Bing Canyon Upper, Red, Maxwell, Apache and Allen coal seams in a total plan area of 34,060 acres.

Its seams are classified as low-sulfur, high-volatile B bituminous coal and can be marketed as a high-ash metallurgical-grade coal, a pulverized coal injection coal or a thermal coal.

Cline closed 63% lower on the Toronto Stock Exchange yesterday at C7c.