Majority of Massey Energy 3.25% convertible noteholders dispute Alpha Natural tender offer

By Jennifer Chiou

New York, Oct. 9 - Holders of more than 70% of Massey Energy Co.'s 3.25% convertible senior notes are in opposition of the tender offer conducted by Alpha Natural Resources, Inc., according to a statement from Akin Gump partners Fred Hodara and Dan Fisher.

Hodara and Fisher are representing several individual holders of the 3.25% convertibles.

The statement said that the notes are the subject of an unwelcome tender by Alpha Natural, and the company has been advised that

• At least 70% of the holders are dissatisfied with the current terms of the tender, specifically the price, covenant strip and tender for only 50% of the notes; and

• These holders have individually determined that they will not tender based on the current terms.

The holders are seeking to negotiate with Alpha Natural in order to find mutually acceptable terms.

Because of the lack of a minimum tender threshold, holders that tender and do not withdraw prior to the early tender date can be forced to accept the current terms without the benefit of any improvements the holders might obtain, the statement added.

Questions may be directed to Hodara at fhodara@akingump.com or Fisher at dfisher@akingump.com.

Alpha Natural Resources is a Bristol, Va.-based producer of coal.

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