Alpha Natural Resource Settles Bankruptcy Issues

by San Antonio Attorney

A deal has been made to unravel the issues West Virginia officials had with unexplained  expenses found out following Alpha Natural Resources’ exit from bankruptcy.

Alpha, currently located in Kingsport, Tennessee, submitted the deal on Nov. 29 in bankruptcy court.

Financial liability for the money spent was settled in the accord with Contura Energy, the the created to buy a number of of Alpha’s assets, and the mediator for Alpha’s past first-lien lenders.

Alpha is satisfied that the concerns raised have been settled, Alpha Natural Resources CEO David Stetson said.

Neale Trangucci, Contura’s autonomous director, said the officers of the company have acted in good faith in the plan of Alpha and they have confidence in the resolution.

Early in November, it was reported that there were $100 million in unexplained debts and West Virginia controller were concerned they expose the company at a greater risk of financial letdown.

Alpha sought for Chapter 11 protection in August 2015 due to sluggish sale of thermal and metallurgical coal and rigorous regulations by the government. It completed the bankruptcy proceedings in July.

The second-largest American coal company has shed most of its market value starting in 2011, when it purchased Massey Energy Co. for an estimated $7 billion. The acquisition made it the largest American manufacturer of metallurgical coal, a component in in steelmaking — and drove it into debt — just before prices started to fall.

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