Contura Energy Inc. has acquired certain core coal assets from Alpha Natural Resources in connection with Alpha's successful restructuring.
Formed and majority-owned by a group of Alpha's first lien lenders, Contura is a well-capitalised entity, created to acquire and operate Alpha Natural Resources' core operations in Northern Appalachia, the Powder River Basin and Central Appalachia.
Specifically, Contura has acquired all of Alpha's operations and reserves in Northern Appalachia (including the Cumberland mine complex) and the Powder River Basin, along with three Central Appalachian mining complexes (the Nicholas mine complex in Nicholas County, West Virginia, and the McClure and Toms Creek mine complexes in Dickenson and Wise Counties, Virginia). Contura also purchased Alpha's interest in the Dominion Terminal Associates coal export terminal in eastern Virginia.
This acquisition was effectuated as part of Alpha's Chapter 11 process, completed in under a year, involving holders of over US$3.9 billion of debt obligations, various federal and state government entities, surety providers, union employees, pension beneficiaries, trade creditors, and others. Terms of the acquisition are detailed within the asset purchase agreement previously filed with the US Bankruptcy Court for the Eastern District of Virginia on 22 June 2016.
Contura will be led by Kevin Crutchfield as Chief Executive Officer, with a workforce of over 2200 former Alpha Natural Resources employees.
"Today marks the successful culmination of a complex and arduous process, made possible by the tireless work of countless employees, collaboration among a diverse stakeholder group and the unwavering commitment of Contura's management team and owners to achieve a positive outcome," said Crutchfield. "The result is the creation of a strong operational asset base, well-positioned to serve unique customer needs in today's challenged coal market."
Contura also announced today the formation of its Board of Directors. Appointed Directors include: Crutchfield; Albert E. Ferrara, Jr, Retired Senior Vice President and Chief Financial Officer of AK Steel Corporation; Jonathan Segal, Managing Director at Highbridge Capital Management, LLC; and Neale Trangucci, Principal at NXT Partners, LLC. Additional Board Members may be announced upon appointment.
Edited from press release by Harleigh Hobbs
Read the article online at: https://www.worldcoal.com/coal/27072016/contura-energy-acquires-certain-coal-assets-from-alpha-natural-resources-2085/
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