During August, U.S. coal producer Alpha
Natural Resources voluntarily filed for
Chapter 11 bankruptcy restructuring. The
petitions were filed with the U.S.
Bankruptcy Court for the Eastern District of
Virginia in Richmond. The company said it
hoped the reorganization will “enhance the
company’s future as it weathers a historically
challenged coal market,” adding that the
filing will help it to emerge as a “financially
viable business that is better positioned to
compete in dynamic energy markets.” Alpha
had secured, from Citigroup, an 18-month
debtor-in-possession (DIP) package of about
$692 million. It is led by a group of the
company’s first and second lien lenders.
Alpha said it will work with all involved
parties to complete reorganization and exit
Chapter 11 “in the most efficient manner
possible,” and added that its entire management
will remain in place throughout
the process. The company owns about 50
underground and surface mines and more
than 20 coal preparation facilities throughout
Virginia, Kentucky, West Virginia,
Pennsylvania and Wyoming.
As featured in Womp 2015 Vol 09 - www.womp-int.com