Alpha Natural Resources files for Chapter 11

New York, Aug. 3 – Alpha Natural Resources, Inc. filed to reorganize under Chapter 11 in the U.S. Bankruptcy Court for the Eastern District of Virginia on Monday.

The company said it made the filing in order to reorganize as “it weathers a historically challenged coal market,” according to a news release.

“While a difficult decision, this voluntary Chapter 11 filing is the right strategy at the right time for the future of our business,” said chairman and chief executive officer Kevin Crutchfield in a news release.

“It will enable us to build on the significant steps we have taken over the past several years to restructure our debt and protect our operations. I am confident Alpha will emerge from this process as a stronger company, with a diversified resource base and better positioned for the future.”

Alpha said it has lined up a $692 million debtor-in-possession facility with an 18-month maturity.

Citigroup is the arranger for the DIP loan, and the facility will be led by a group of first- and second-lien lenders.

Alpha is a Bristol, Va., coal miner.

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