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Armstrong Energy Transaction Agreement Reached

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Murray Energy, in a press release, announced that its unrestricted subsidiary, Murray Kentucky Energy, has entered into a legally binding Transaction Agreement with Armstrong Energy, and certain of its senior secured noteholders to acquire a 51% ownership interest in a new company that will own certain assets formerly held by Armstrong Energy.

The secured noteholders of Armstrong Energy will hold a 49% ownership interest in the new company. Mr. Robert E. Murray, Chairman, President and Chief Executive Officer of Murray Energy said, “We are pleased that we were able to reach an agreement with Armstrong Energy and its secured noteholders in order to ensure that these mines continue to operate after the bankruptcy process. This transaction will provide needed stability to the coal industry in Western Kentucky.  It will also provide operational consistency to our domestic customers and greater opportunity for coal sales into the international export markets. This is a very important transaction for our employees, the employees of Armstrong who will join us, and our lenders and customers.” After this transaction is completed, Murray Kentucky and the lenders of Armstrong Energy will jointly own 5 mines that are strategically important in the Illinois Basin. These operations will complement the existing mines in the Illinois Basin.  The transaction would be implemented as part of Armstrong Energy’s proposed plan of reorganization, which has the support of the Company’s secured noteholders and its official committee of unsecured creditors.  The new company will be a producer of low-chlorine, high-sulfur thermal coal, with 5 mines in the Illinois Basin, including 3 surface mines and 2 operating underground mines.

More on energy bankruptcies at BankruptcyData.

The post Armstrong Energy Transaction Agreement Reached appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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