Alpha seeks court approval of $1.13 million Greenfields settlement

By Mark Reccek

Bethlehem, Pa., Oct. 5 – Alpha Natural Resources, Inc. requested court approval to enter into a settlement amounting to $1.13 million to settle all claims under a loan agreement with Greenfields Coal Company LLC, Gary Coal Company LLC, Reclaiming LLC and Gary Partners LLC, according to a motion filed Monday with the Eastern District of Virginia.

According to the motion, on July 17, 2011 Alpha and Greenfields entered into a loan and security agreement in which Alpha loaned $10 million to Greenfields. On Feb. 27, 2012 Alpha and Greenfields, along with each of the guarantors, executed an amendment to the agreement postponing and rescheduling initial payments due. Despite loan concessions, Greenfields and the guarantors defaulted on the loan and remain in default.

The motion indicates, to date, Gary Partners has made payments on the loan totaling $100,000, while Greenfields owes Alpha $17 million.

Under the settlement, the guarantors have agreed to cause $1.13 million in cash to be paid to Alpha.

“The settlement agreement represents a sound exercise of the debtors’ business judgment, is squarely within the range of reasonableness and is in the best interests of the debtors’ estates,” the motion said.

Alpha Natural Resources is a Bristol, Va., coal miner that filed bankruptcy on Aug. 3. The Chapter 11 case number is 15-33896.

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