Alpha Natural Resources expects approval of bankruptcy financing plan
Bristol-based Alpha Natural Resources Inc. expects a bankruptcy court judge to approve plans for financing company operations while it is going through Chapter 11 reorganization.
The coal mining company had secured an 18-month, debtor-in-possession (DIP) financing package of up to $692 million before it filed for bankruptcy court protection in early August.
“We believe that, in concert with existing liquidity, this package provides the financial flexibility needed to navigate the Chapter 11 process,” Phillip Cavatoni, Alpha's chief financial and strategy officer, said in a statement.
The company said that changes made to the original package have been agreed to by all parties and did not affect the overall financing sought by Alpha.
Alpha said Wednesday that, following a Tuesday hearing, it expected a final order to be entered authorizing the DIP package.
After several years of annual losses, Alpha filed for Chapter 11 bankruptcy protection in U.S. Bankruptcy Court for the Eastern District of Virginia citing increasing government regulation, falling coal prices, an abundance of low-cost natural gas and slower than expected economic growth.
Alpha Natural Resources is one of the largest coal suppliers in the United States, with operations in Virginia, West Virginia, Kentucky, Pennsylvania and Wyoming.