Alpha Natural Resources in ongoing restructuring talks with creditors

By Caroline Salls

Pittsburgh, Nov. 3 – Alpha Natural Resources, Inc. is in ongoing discussions with some of its secured creditors in connection with its restructuring, including discussions related to the development of a preliminary five-year business plan, according to an 8-K filed Tuesday with the Securities and Exchange Commission.

According a preliminary management plan review presented to the creditors last month, Alpha Natural management developed a detailed five-year forecast that includes an optimized PLR development plan in the Marcellus gas shale region that maintains optionality, a supply and demand market outlook, a review of the operating footprint to enhance overall value of the company’s portfolio through logistical, commercial and operational features, a value enhancement plan that identifies operational efficiencies and financial projections from 2016 to 2020.

As part of the financial projections, EBITDA is expected to improve to $45.3 million in 2020 from negative $3.7 million in 2015, revenue is projected to grow to $79 million in 2020 from $6.5 million in 2015 and free cash flow is forecast to range to negative $13.8 million in 2020 from negative $64.6 million in 2015.

Alpha Natural Resources is a Bristol, Va., coal miner that filed bankruptcy on Aug. 3 in the U.S. Bankruptcy Court for the Eastern District of Virginia. The Chapter 11 case number is 15-33896.

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