Alpha Natural bankruptcy triggers credit agreement termination event

By Caroline Salls

Pittsburgh, Aug. 7 – Alpha Natural Resources, Inc.’s Chapter 11 bankruptcy filing constituted a termination event under ANR Second Receivables Funding, LLC’s credit and security agreement with General Electric Capital Corp. and Webster Business Credit Corp., according to an 8-K filed Friday with the Securities and Exchange Commission.

At the time the facility was terminated, there was no outstanding principal balance, but there were outstanding letters of credit totaling roughly $103 million.

Alpha Natural said the outstanding letters of credit have been collateralized by the issuance of a back-to-back letter of credit and under a collateral, substitution, release, and conveyance agreement dated Aug. 6.

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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