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Armstrong Energy, Inc. Possible Bankruptcy Filing

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On March 31, 2017, Armstrong Energy, Inc. reported results for both the three and twelve month periods ended December 31, 2016. Further, the Company announced that it has engaged financial and legal advisers to assist in restructuring their capital structure and evaluate other potential alternatives to address impending liquidity constraints. It may be difficult to come to an agreement that is acceptable to all creditors. If a successful restructuring with the holders of the Notes is not achieved, it may be necessary to file a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code in order to implement a restructuring, or the creditors could force the Company into an involuntary bankruptcy or liquidation.

On April 4, 2017, S&P Global Ratings lowered its corporate credit rating on Armstrong Energy, Inc. to CCC- from CCC and its senior secured notes to CCC- from CCC. According to S&P Global, Armstrong Energy is in a dispute with certain of the holders of its 11.75% senior secured notes over whether a change of control has occurred under the notes’ indenture that, if decided unfavorably, could trigger a default event under the notes’ indenture. Therefore, S&P believes that a default or distressed exchange is inevitable. “The negative outlook reflects our view that a default, restructuring, or debt exchange is inevitable in the next six months,” said S&P Global Ratings credit analyst Vania Dimova. Read more on distressed companies.

The post Armstrong Energy, Inc. Possible Bankruptcy Filing appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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