Alpha Natural shareholders request official committee representation

By Caroline Salls

Pittsburgh, Nov. 25 – Several Alpha Natural Resources Inc. shareholders asked the U.S. Bankruptcy Court for the Eastern District of Virginia to order appointment of an official committee of equity security holders for the company’s Chapter 11 case, according to a motion filed Wednesday.

“In light of the significant equity value, the widely held nature of ANR’s stock, the complexity of these cases and the insufficiency of shareholder representation absent a committee, the court should direct the U.S. Trustee to appoint an official committee of equity security holders,” the motion said.

The shareholders said the Alpha Natural debtors report having made efforts to engage major creditor constituencies, but the company’s stockholders have been excluded.

“In fact, not only has this substantial shareholder body been left out in the cold, their rights have been affirmatively curtailed as the debtors have used these cases to impose trading restrictions.

“The numerous shareholders in ANR have a significant interest that has not been and will not be adequately represented absent the appointment of a committee.”

The shareholders said the committees that have appeared in the case on an official and informal basis have no obligation beyond their own constituency, whose interests conflict with those of shareholders, particularly in negotiating the capitalization of a reorganized debtor.

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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