The company had announced the finance deal in April.

“Cline is focused on reducing its operating costs and maintaining the New Elk mine in statutory compliance whilst it discusses an alternative recapitalization proposal with Marret,” executive chairman Mark Haywood said.

He noted the preliminary prospectus related to the agreement would be withdrawn.

Cline reverted to the Marret plan restructuring transaction in April after alternative Singapore-based private company Portpool Investments did not meet an initial deposit deadline.

The company had said earlier in the month that it would pursue its previously negotiated restructuring plan with Marret; that transaction was first announced in December 2012.

At that time, Cline president and chief executive officer Ken Bates blamed the necessity of the restructuring on macro factors hammering the industry as a whole.

“The restructuring is an important step in the company’s efforts in developing a long-term financial solution to address the uncertainty regarding the magnitude and extent of the downturn in the coal markets,” he said.

Last week, Bates confirmed he would resign from the company. He had served as president, CEO and a director of the company since its foundation.

Cline appointed V James Sardo to succeed him as a director of the company.

It also appointed Mark Haywood as executive chairman of the board last week following the resignation of Bill McKnight.

Industry veteran Haywood joined Cline’s board on February 11.

McKnight, who has served as a director since December 2004 and chairman of the board since January 2005, stepped down as of May 18.

He will continue to serve as a director.

Additionally, Peter Elzinga also has resigned from the Cline board.

Elzinga had served as a director since June 2010.

Cline Mining holds significant metallurgical coal property interests in British Columbia as well as at the New Elk complex in Colorado.

New Elk’s inferred coal resources total is 104.5Mt; it comprises the Green, Loco, Blue, Bing Canyon Upper, Red, Maxwell, Apache and Allen coal seams in a total plan area of 34,060 acres.

The complex’s 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.