Alpha Natural to Sell Inactive Coal Mines
DOW JONES & COMPANY, INC. 1:12 PM ET 10/23/2015
Symbol Last Price Change
ANRZQ 0.0278up -0.0012 (-4.14%)
QUOTES AS OF 01:55:24 PM ET 10/23/2015
Alpha Natural Resources (ANRZQ) is selling a collection of closed coal mines as it revamps its business in bankruptcy.
At least 16 idled mines in West Virginia, Kentucky, Tennessee and Illinois are being put up for sale in Alpha's chapter 11 bankruptcy proceeding, which began in August.
The company has set a Jan. 20, 2016, target date for bids and would like to seek a bankruptcy judge's approval for sales by February, according to papers filed Thursday in the U.S. Bankruptcy Court in Richmond, Va.
Alpha is one of a number of coal mining operations to take shelter in bankruptcy in a bid to weather widespread distress in the market. This week, the company said it expects to have a draft business plan ready by the end of October.
Shedding unprofitable assets is part of that plan, the company said. Many of the mines have already been marketed. Bankruptcy allows Alpha to offer the properties "free and clear" of many complications that might otherwise daunt prospective owners.
Alpha says it may add or remove some properties to the list being sold. Generally, the properties on the list aren't generating revenues but are draining cash for reclamation and maintenance costs. One of the country's largest coal producers, Bristol, Va.-based Alpha picked up a lot of debt in the 2011 acquisition of Massey Energy. It reported more than $7 billion in liabilities in its bankruptcy papers. The figure includes nearly $2 billion in secured debt and more than $2 billion in unsecured bond debt.
Proposed sale procedures are scheduled for hearing Nov. 5, court papers say.
Write to Peg Brickley at peg.brickley@wsj.com
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