Abstract: The present invention relates to a process for hydrocracking SGE of carbonaceous material to produce light distillate, including chemical feedstocks and transport fuels.A mixture of crushed coal and a solvent is fed to an extractor 1 wherein the solvent is heated and pressurized to form a supercritical gas. Carbonaceous material is extracted from the coal into the gas. The unextracted coal, including ash and some carbonaceous material, is separated from the SGE in solution in the supercritical solvent in a separation stage 2. The SGE in the solvent is maintained in the supercritical state and fed to a hydrocracking stage 3 wherein it is mixed with excess hydrogen. After hydrocracking, the SGE in supercritical solution is passed through a pressure let-down valve 4 to a distillation stage 5 wherein the product of the hydrocracking stage 3 is separated into gases, solvent for recycling, light distillate and material boiling above 350.degree. C.