Daily News: August 4, 2015

Alpha Natural Resources Files Chapter 11, Owes Citi, GE $1B+


Coal producer Alpha Natural Resources filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court in Richmond, VA. According to the bankruptcy court documents, Alpha showed total assets and debts, as of June 30, 2015, of $10.1 billion and $7.1 billion, respectively.

The court documents show that Citibank was administrative and collateral agent for a pre-petition term loan having a current outstanding balance of $611 million. GE Capital was shown as the administrative agent under the debtors’ pre-petition secured accounts receivable facility with a combined $445 million in outstanding balances.

According to the court documents, Alpha is seeking court approval to obtain post-petition DIP financing consisting of a term loan in the amount of $300 million.

The Wall Street Journal noted in a related report that the coal mining company was entering chapter 11 as part of a plan to cut its debt load, another victim of the severe slump in coal prices that continues to wreak havoc on the industry.

Access the related Wall Street Journal report here.