Alpha Natural loan amended; second-lien noteholder syndication begins

By Caroline Salls

Pittsburgh, July 1 – Alpha Natural Resources, Inc. executed a sixth amendment to its debtor-in-possession credit agreement that extends milestones under the first-out DIP agreement, according to an 8-K filed Friday with the Securities and Exchange Commission.

Specifically, under the amendment, the company is required to obtain confirmation of a Chapter 11 plan acceptable to the required lenders by July 12. The amended credit agreement requires the plan to take effect by July 31.

The amendment also amends and restates negative covenants related to capital expenditure.

In addition, the amendment deletes in its entirety a negative covenant related to capital expenditures and a threshold for minimum consolidated liquidity under its first-out DIP credit agreement

Alpha Natural said in a separate 8-K that it filed syndication procedures under which holders of its second-lien notes are being afforded the opportunity to subscribe to provide financing as lenders under a new company ABL facility.

The company said in the procedures that it would begin syndication of the ABL facility no later than June 30. The syndication process will expire at 5 p.m. ET on July 20.

Alpha Natural Resources is a Bristol, Va., coal miner that filed for bankruptcy on Aug. 3, 2015 in the U.S. Bankruptcy Court for the Eastern District of Virginia. The Chapter 11 case number is 15-33896.

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