Alpha Natural Resources, Inc. today announced that it has filed a proposed Chapter 11 Plan of Reorganization and a related Disclosure Statement with the United States Bankruptcy Court for the Eastern District of Virginia. Together with the recently-filed motion seeking approval of a marketing process for Alpha's core operating assets, these filings provide for the sale of Alpha's assets, detail a path toward the resolution of all creditor claims, and anticipate the emergence of a streamlined and sustainable reorganized company able to satisfy its environmental obligations on an ongoing basis.
By selling certain assets as a going concern and restructuring the company's remaining assets into a reorganized Alpha, the company is able to provide maximum recovery to its creditors, while preserving jobs and putting itself in the best position to meet its reclamation obligations. This path will allow for a conclusion of Alpha's bankruptcy proceedings by June 30, 2016.
On February 8, 2016, Alpha filed a motion with the Bankruptcy Court requesting approval of procedures to govern a marketing and sale process for Alpha's core assets; the process includes a "stalking horse" credit bid of existing secured debt submitted by the company's first lien lenders. As a stalking horse bid, it is subject to higher or better offers, but provides Alpha with a backstop bid for its core assets in the amount of $500 million (plus the lenders' assumption of certain liabilities). Unless a higher offer is received prior to the bid deadline, Alpha plans to sell its core businesses and related assets to the company's first lien lenders pursuant to the terms of the stalking horse bid. This and all asset sales are subject to Bankruptcy Court approval.
The stalking horse bid identifies the core assets to be auctioned by Alpha. Specifically, the stalking horse bid contemplates the purchase of:
•the company's Alpha Coal West mine complexes in Wyoming;
•the company's McClure, Nicholas and Toms Creek mine complexes in West Virginia and Virginia;
•all of the company's coal operations and reserves located in Pennsylvania, including the debtors' Cumberland and Emerald mine complexes, their Freeport, Sewickley, and Foundation coal reserves, and all related assets;
•the company's interest in a natural gas business in the Marcellus Shale owned by Alpha entity Pennsylvania Land Resources Holding Company, LLC;
•the company's interest in Dominion Terminal Associates, a coal export terminal in Newport News, Virginia; and
•certain other assets, including working capital.
A hearing to consider approval of the proposed bidding and sale procedures is scheduled before the Bankruptcy Court on March 10, 2016. Following subsequent approval of the Disclosure Statement, certain related procedures for voting on the plan, and other pending matters, the company will seek creditor acceptance of the plan, which is also subject to Bankruptcy Court approval.
On February 8, 2016, Alpha filed a motion with the Bankruptcy Court requesting approval of procedures to govern a marketing and sale process for Alpha's core assets; the process includes a "stalking horse" credit bid of existing secured debt submitted by the company's first lien lenders. As a stalking horse bid, it is subject to higher or better offers, but provides Alpha with a backstop bid for its core assets in the amount of $500 million (plus the lenders' assumption of certain liabilities). Unless a higher offer is received prior to the bid deadline, Alpha plans to sell its core businesses and related assets to the company's first lien lenders pursuant to the terms of the stalking horse bid. This and all asset sales are subject to Bankruptcy Court approval.
The stalking horse bid identifies the core assets to be auctioned by Alpha. Specifically, the stalking horse bid contemplates the purchase of:
•the company's Alpha Coal West mine complexes in Wyoming;
•the company's McClure, Nicholas and Toms Creek mine complexes in West Virginia and Virginia;
•all of the company's coal operations and reserves located in Pennsylvania, including the debtors' Cumberland and Emerald mine complexes, their Freeport, Sewickley, and Foundation coal reserves, and all related assets;
•the company's interest in a natural gas business in the Marcellus Shale owned by Alpha entity Pennsylvania Land Resources Holding Company, LLC;
•the company's interest in Dominion Terminal Associates, a coal export terminal in Newport News, Virginia; and
•certain other assets, including working capital.
A hearing to consider approval of the proposed bidding and sale procedures is scheduled before the Bankruptcy Court on March 10, 2016. Following subsequent approval of the Disclosure Statement, certain related procedures for voting on the plan, and other pending matters, the company will seek creditor acceptance of the plan, which is also subject to Bankruptcy Court approval.