Posted on 04/10/2014 12:13:12 PM PDT by thackney
A combination of a heavy debt load and a dramatic decline in demand and prices for coal pushed Richmond-based James River Coal Co. into Chapter 11 bankruptcy court protection.
The company, which filed for Chapter 11 protection on Monday along with more than 30 of its subsidiary businesses, said in court filings Tuesday that it lost an estimated $16 million in 2013, as coal volumes and revenue dropped dramatically from 2012 to 2013.
“The debtors’ businesses have reached the point of unsustainability absent utilization of the tools presented by Chapter 11,” James River Coal Chairman, President and CEO Peter Socha said in a statement filed with the U.S. Bankruptcy Court in Richmond.
“The debtors have a highly levered capital structure that cannot be sustained in light of their declining operating performance resulting from the competitive and challenging macroeconomic environment.”
The company’s stock price plummeted 63 percent Tuesday, the day after it filed for court protection. The stock dropped 45 cents to close at 2 cents on the NASDAQ.
James River Coal had been warned by the stock exchange on March 18 that its shares had traded below the required minimum of $1 per share for the previous 30 consecutive business days and could be delisted in September if the price does not increase.
A court hearing is scheduled for today to consider motions by James River Coal that would enable the company to continue its operations while restructuring its debt.
The company’s court filings listed $464.5 million in outstanding debt notes, much of it the result of the company’s $475 million cash buyout in 2011 of Charleston, W.Va.-based mine operator International Resource Partners and its marketing and trading subsidiary, Logan & Kanawha Coal.
(Excerpt) Read more at timesdispatch.com ...
Mission Accomplished!!
The war on coal continues in the South as the war on cattle continues in Nevada.
So who is next here?
Skyrocket!
The left wants to put coal and oil companies out of business. By whatever means necessary.
BUSH’s FAULT!
Hussein did what he said he was going to do.
The coal companies have moved, since 2008 to now, like internet stocks post-2001.
I used to trade ANR 120-130.
$4.42
Congrats Barry. Go ahead and carve another notch into the Resolute desk. Then slap on that big grin and do a little victory dance for the folks.
I hope all of those unemployed Union Democrats are happy now.
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