Armstrong Energy Inc., a producer and marketer of thermal coal in the Illinois Basin, and substantially all of its wholly owned subsidiaries (collectively, the company) have filed voluntary petitions for reorganisation under chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the Eastern District of Missouri.
The company took this action in order to consummate the transfer of substantially all of its assets (the transaction) to a new entity to be jointly owned by Knight Hawk Holdings, LLC (Knight Hawk) and the company's secured noteholders.
Armstrong expects its mining operations and customer shipments to continue in the ordinary course throughout the chapter 11 process.
"We remain firmly committed to serving our customers and to being a good employer by maintaining safe, productive operations as we undertake this process," said Armstrong Executive Chairman, J. Hord Armstrong, III. "We are confident that this court-supervised process is the best way to close the Transaction expeditiously."
Upon the close of the proposed Transaction, Knight Hawk will take control of Armstrong's ongoing operations.
The company filed various motions with the Bankruptcy Court, requesting authorisation to continue paying employee wages and providing health care and other benefits. Armstrong has also asked for authority to continue existing customer programs and intends to pay suppliers in full under normal terms for goods and services provided after the filing date of 1 November 2017.
Read the article online at: https://www.worldcoal.com/coal/02112017/armstrong-energy-files-for-bankruptcy/