Murray Energy Corporation, America’s largest underground coalminer is battling to stave off bankruptcy, Yesterday it extended forbearance agreements with its lenders and elected not to make interest payments to noteholders,
Murray Energy Corporation, America’s largest underground coalminer is battling to stave off bankruptcy, Yesterday it extended forbearance agreements with its lenders and elected not to make interest payments to noteholders
Statement From Murrey Energy:
Murray Energy Corporation previously disclosed, on October 2, 2019 Murray Energy Corporation (“Murray Energy” or “the Company”) entered into forbearance agreements with lenders holding in excess of 50% of outstanding loans under its Superpriority Credit and Guaranty Agreement and with lenders holding in excess of 50% of outstanding loans under its ABL and FILO credit facilities.
Under the terms of the forbearance agreements, the lenders agreed to forbear from exercising any and all remedies available to them in respect of any event of default arising from the missed amortization and interest payments due on September 30, 2019. On October 15, 2019, Murray Energy and its lenders amended the previously disclosed forbearance agreements, extending the forbearance period through 11:59 p.m. (New York time) on October 28, 2019, unless further extended.
The forbearance agreements will terminate upon the earlier of the end of the forbearance period or the occurrence of a specified forbearance termination event. With discussions with its lenders and noteholders regarding strategic options to strengthen the Company’s business, liquidity and capital structure ongoing, the Company elected not to make the cash interest payments due on October 15, 2019 to holders of the Company’s 12.00% Senior Secured Notes due 2024 and 11.25% Senior Secured Notes due 2021. via Murrey Energy Statement
Further inquiries should be directed to media@coalsource.com.
S&P downgraded Murray to default status
Murray Energy focused on exports witht he trade war those shipments have shrank with plunging prices overseas.
US coal exports are estimated to have dropped to 20.9 million short tons in the third quarter, according to the US Energy Information Administration. That represents a 28% drop from the same period of 2018. The EIA expected coal exports to keep falling, slipping to 17.3 million by the end of 2020.
“International thermal coal prices have made exports unprofitable for most of 2019, leading to mine idling and deteriorating cash flows,” S&P Global Ratings analyst Vania Dimova wrote in a report this week.
Murray Energy is under so much pressure that it failed to make amortization and interest payments during a grace period that ended on October 7. That led S&P Global Ratings to downgrade the company’s credit rating to “default.” In a statement last week, Murray Energy said it plans to use the grace period that expires after October 17 to consider its next steps.
About Murrey
Energy Murray Energy Corporation is the largest privately owned coal company in the United States, producing approximately seventy-six million tons of high quality bituminous coal each year, and employing nearly 7,000 people in six states, and Colombia, South America. Murray Energy now operates fifteen active mines in five regions in the United States, plus two mines in Colombia, South America.
Murray Energy operates twelve underground longwall mining systems and forty-two continuous mining units. They operate ten transloading facilities, and five mining equipment factory and fabrication facilities.
Source: Murrey Energy