The US Bankruptcy Court for the Eastern District of Virginia has approved Alpha Natural Resources’ plan of reoganisation, the company has announced in a press release.
The plan will come into effect on the company’s emergence from Chapter 11 bankruptcy protection, which is expected in late July. On emergence from Chapter 11, Alpha is expected to operate as a privately-held company.
The court also approved the sale of Alpha’s core assets to Contura Energy, a new company formed by a group of Alpha’s first-lien lender. The sale is scheduled to close at the same time as Alpha emerges from Chapter 11 and includes Alpha’s assets in the Powder River Basin, Pennsylvania and the Nicholas, McClure and Toms Creek mines in Virginia and West Virginia.
Alpha’s interest in the Dominion Terminal Associates coal export terminal in Newport News, Virginia, is also included in the sale.
As part of the deal to let Alpha leave Chapter 11, Contura Energy will also provide credit support for the reorganised Alpha to fund the company’s reclamation activities.
Edited by Jonathan Rowland.
Read the article online at: https://www.worldcoal.com/coal/07072016/court-approval-paves-alphas-way-out-of-bankruptcy-2016-1099/