Alpha Natural Resources, Inc. (OTCMKTS:ANRZ) Files for Chapter 11 Bankruptcy
After delisting from the New York Stock Exchange only recently, yesterday Alpha Natural Resources, Inc. (OTCMKTS:ANRZ) officially put the word out that it was filing for Chapter 11 bankruptcy. The stock closed down in double digits again, stopping at $0.035 by the bell.
Even though there has been speculation concerning ANRZ going down the Chapter 11 path for a while, it’s now official. The press release accompanying the event spoke of a “historically challenged” coal market. ANRZ seeks to continue regular operations, including coal mining and wage payments while in Chapter 11.
ANRZ was struggling on the charts through the better part of 2015. After trading for $1.4 in late February, the stock went to drop as low as $0.25 just before the delisting event. The official confirmation of delisting from the NYSE pushed it into a further tumble of 58% in a single session, with multiple analysts downgrading their ratings for ANRZ stock.
ANRZ operates over 50 active mines in a number of states. CEO and Chairman Mr. Kevin Crutchfield commented that the U.S. coal market is currently in a state of unprecedented difficulty and is suffering from a number of factors, including government regulation forcing power generation facilities to use alternative power sources.
ANRZ announced having secured an 18-month debtor-in-possession financing package of up to $692 million, which should give the company sufficient opportunities to reorganize.
