Alpha Natural Resources, Inc.(fka ANRZQ)

[juan from Madrid]

Good news. Exit bankruptcy is near
http://www.bidnessetc.com/71049-arch-coal-alpha-natural-resources-nearing-bankruptcy-exit/
The US coal industry finally has some good news to cherish as Alpha Natural Resources Inc. and Arch Coal Inc. are nearing a bankruptcy exit deal. After a long spree of uncertain commodity prices, the coal industry was in turmoil. The sluggish market conditions led to the bankruptcy of Peabody Energy Corporation. The filing of the largest coal producer comes after the company's failure to finance the expansion into Australia amid plunging coal prices.
Arch Coal Exit Plan

Arch Coal Inc. (OTCMKTS:ACIIQ) filed for bankruptcy protection in January after the company's leverage levels were pushed beyond sustainable due to sluggish market conditions. The company was able to gather support of its unsecured creditors. Arch was in talks with the creditors for a long a time amid threats of litigation over its inability to emerge from bankruptcy. The creditors’ threaten to file a lawsuit against the company after it tweaked the terms of the initial plan. The disagreement comes after a failed deal between the unsecured creditors and lenders over a $4 billion upward payment. Arch Coal has now amended the terms again and this time has offered cash and stock to its unsecured bondholders. The bankruptcy court in St. Louis will take an initial look at the renewed terms.

The company initially tried to avert bankruptcy by launching an exchange offer but was ultimately blocked by the senior lenders. The new plan would end all the litigations and disputes that arose from the failed debt exchange. GSO Capital Partners, the holder of unsecured bond debt, would get $5 million to settle a lawsuit it filed against the company in May. Under the new plan, official committee of unsecured creditors also agreed to stop its plans of filing a separate lawsuit against the company.

As part of the new plan, senior management of the company will surrender claim to $6 million in incentives to expedite the bankruptcy emergence plan. The unsecured creditors committee has been against the executive bonuses. Following the filing of the new plan, there are renewed hopes that the company will soon emerge from bankruptcy. The court will review the new plan on July 6 for approval.
How Alpha Natural Resources is Playing its Cards

Coal extraction company, Alpha Natural Resources, Inc. (OTCMKTS:ANRZQ) and environmental groups reached a deal for cleaning up coal mining projects. Under the deal reached with the Ohio Valley Environmental Coalition, the West Virginia Highlands Conservancy and The Sierra Club, the company will spend up to $7.5 million on the cleaning projects. After the deal, the environmental groups agreed to pave the way for the company's emergence from bankruptcy without any opposition. The development comes just days after the U.S. government termed the reorganization plan fundamentally flawed. The government argued that the plan doesn't comply with obligations for mine cleaning. The new deal clears the main hurdle that was impeding the company's efforts to end its bankruptcy.

Alpha Natural filed its plan of re-organization with the US Bankruptcy Court in March, under which the company was able to put up its assets for sale. The dispositions helped the energy company to settle all the creditors' claims. The unsold assets will become part of the company's balance sheet and will help it to fulfill its environment reclamation obligations on a daily basis.
Bottom Line

Market players were pessimistic about the outlook for the coal industry with some of the biggest companies filing for bankruptcy. But the planned changes in providing subsidy on coal mine cleanup costs have spurred a new life in the efforts to revive the industry. Additionally, the agreements with the green groups are also a positive sign for the companies in question. Although the companies were facing problems in selling their assets but the new developments will pave the way for speedy assets disposals. Looking ahead, analysts expect a sharp rebound in coal prices if the coal companies remain operational.