Coal

[Tommy]

$JRCC - James River Coal: How Its Debt Swap Affects Valuation And Bankruptcy Risk

http://seekingalpha.com/article/1462851-james-river-coal-how-its-debt-swap-affects-valuation-and-bankruptcy-risk?source=email_rt_article_readmore

... "James River Coal has continued to make impressive strides to improve their balance sheet, reducing their long term debt load by around $180 million over the last year due to these note exchanges plus additional repurchases. The current note exchanges somewhat limits the maximum upside due to dilution, but also makes James River Coal more valuable in a moderate recovery scenario due to the reduced debt loads. However, their situation is unchanged if the metallurgical coal market fails to make a meaningful recovery. In such a scenario bankruptcy remains a serious possibility in 2014, although management has proven to be resourceful in managing financing. James River Coal remains a high risk and a high reward stock, although with slightly reduced reward now, and reduced long-term risk if they can weather the next year or so." ...