The Conversation (0)
Alpha Natural Resources (OTCMKTS:ANRZ) is planning to file for bankruptcy as soon as Monday, Bloomberg reported. Three people with direct knowledge of the matter told the news outlet that Alpha is considering such measures in light of weak metallurgical coal prices.
Alpha Natural Resources (OTCMKTS:ANRZ) is planning to file for bankruptcy as soon as Monday, Bloomberg reported. Three people with direct knowledge of the matter told the news outlet that Alpha is considering such measures in light of weak metallurgical coal prices.
As quoted in the publication:
The company’s senior lenders including Citigroup Inc. and Davidson Kempner Capital Management plan to provide a loan to fund the company through bankruptcy, said the people, who asked not to be named because the discussions are private. The company is in talks with the creditors over a plan that would include shutting mines, two of the people said. The conversations continue and the court would have authority over such actions during Chapter 11 proceedings.
Bristol, Virginia-based Alpha Natural would follow rivals Walter Energy Inc., Patriot Coal Corp. and James River Coal Co. in filing for bankruptcy during the past 15 months as met coal prices dropped 72 percent since 2011.
Alpha Natural, despite reporting $1.8 billion in cash and available credit at end of March, hasn’t turned in a profit since 2010, according to data compiled by Bloomberg.