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Murray Energy Corp. files Chapter 11 bankruptcy

WHEELING — Murray Energy Corp. on Tuesday announced it had filed for Chapter 11 bankruptcy protection, which the company said would allow it to access $350 million in new debtor-in-possession financing as it works with lenders to restructure.

The filing Tuesday happened in the United States Bankruptcy Court for the Southern District of Ohio.

As part of the filing, and with support of the company’s creditors, Robert D. Moore has been named president and CEO of Murray Energy and Murray Energy Corp. He replaces Robert Murray in those roles.

Also in its filing, Murray announced the formation of a new company, Murray NewCo., which will work to acquire the company’s assets by credit bidding its debt.

“We appreciate the support of our lenders for this process, many of whom have been invested with the Company for a long time. I am confident the DIP Facility provides the Company with adequate liquidity to get payments to our valued trade partners and continue operating in the normal course of business without any anticipated impact to production levels,” Moore said.

Company founder Robert E. Murray noted, “Although a bankruptcy filing is not an easy decision, it became necessary to access liquidity and best position Murray Energy and its affiliates for the future of our employees and customers and our long term success.”

Also Tuesday, to facilitate the filing, the company announced that Murray Energy and certain of its subsidiaries entered into a Restructuring Support Agreement with an ad hoc lender group holding more than 60% of the company’s approximately $1.7 billion in liabilities.

Voluntary petitions also have been filed for all of Murray’s main operating subsidiaries, including American Energy Corporation, The Harrison County Coal Company, The Marion County Coal Company, The Marshall County Coal Company, The Monongalia County Coal Company, The Ohio County Coal Company, UtahAmerican Energy, Inc., Murray South America, Inc., The Muhlenberg County Coal Company and The Western Kentucky Coal Company, LLC, which operate mining complexes located in Ohio, West Virginia, Utah, Kentucky and Colombia.

Foresight Energy LP and Foresight Energy GP LLC, including their direct and indirect subsidiaries, as well as Murray Metallurgical Coal Holdings, LLC, Murray Eagle Mining, LLC, Murray Alabama Minerals, LLC, Murray Maple Eagle Coal, LLC, Murray Alabama Coal, LLC and Murray Oak Grove, LLC did not file voluntary petitions and are not part of the Company’s Chapter 11 cases.

Under the restructuring, the Ad Hoc Lender Group has agreed to form a new entity (“Murray NewCo”) to serve as a “stalking horse bidder” to acquire substantially all of the Company’s assets by credit bidding its debt under a Chapter 11 plan, subject to an overbid process. The RSA contemplates that substantially all of the Company’s prepetition funded debt will be eliminated. The RSA further contemplates that Mr. Robert E. Murray will be named Chairman of the Board of Murray NewCo and Mr. Robert D. Moore will be President and CEO of Murray NewCo. The Company has agreed to comply with certain milestones related to implementing its Chapter 11 plan and related sale process under the DIP Facility and RSA.

The company said it has filed motions with the Bankruptcy Court that when granted will enable day-to-day operations to continue uninterrupted.

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