Murray Energy emerges from bankruptcy under new name
Murray Energy Holdings, has emerged from bankruptcy under the new name of American Consolidated Natural Resources Inc.
The Chapter 11 bankruptcy plan filed by Murray Energy was approved in August in U.S. bankruptcy court in Ohio and became effective Sept. 16. The company said in a statement that it has completed the sale of its assets to an entity formed by former creditors.
American Consolidated Natural Resources Inc. (ACNR) is now the largest privately owned U.S. coal operator with active mines in Alabama, Kentucky, Ohio, West Virginia and Utah, the statement said.
ACNR also has separate management services agreements to operate Foresight Energy mines in Illinois and Murray Energy subsidiary Murray Metallurgical mines, Fox Business reported.
The new company plans to produce about 32 Mt/a (35 million stpy) of bituminous coal. In 2018, Murray Energy produced 42 Mt (46.4 million st) and was the country’s fourth largest coal producer, accounting for 6 percent of total production, according to the Energy Information Administration.
The restructuring eliminated more than $8 billion of Murray’s debt and legacy liabilities, and it allowed the new company to access new financing, providing ACNR with enhanced financial flexibility, the company statement said.
When the bankruptcy filing was announced in October 2019, Robert D. Moore was named president and CEO of Murray Energy, replacing Robert Murray. Moore also heads the new company, which has more than 4,000 employees.
“Throughout these complex proceedings, we have been challenged with a global pandemic, extremely volatile coal markets, and months of uncertainty, Moore said. “Our employees and business partners met these challenges, and, together, moved the company forward to today’s emergence.”
ACNR has hired members of the United Mine Workers union who formerly worked at Murray Energy, the union said in a statement. Union members ratified an agreement with ACNR in May.
“There is much to be concerned about for those of us associated with and working in the coal industry during these troubling times, but it is good that this process has finally been completed and our members can put the uncertainty of the bankruptcy behind them,” UMW President Cecil Roberts said.