Alpha Natural Resources said Tuesday that it has emerged from bankruptcy as a smaller, privately held company that hopes is better positioned to survive a drastically downsized coal market.
Once a giant producer, the new Alpha will operate 18 mines and eight preparation plants in West Virginia and Kentucky. Alpha's larger and more valuable properties - primarily in the western U.S. - were transferred during the reorganization to Contura Energy, a new company formed by Alpha's first-lien lenders.
The announcement on Tuesday comes less than three weeks after Alpha's reorganization plan received approval from a federal bankruptcy judge. Alpha and its affiliates will have offices in Julian, West Virginia; and Kingsport, Tennessee.
Along with the announcement of its emergence from bankruptcy, Alpha said that David Stetson, a former official from Trinity Coal, RAAM Global Energy and JW Resources, had been appointed as CEO of the reorganized company.
"By completing this restructuring, ANR emerges as a company with a solid financial foundation and a strong team to continue to mine and sell coal," Stetson said in Alpha's press release.
"We are now also better positioned to satisfy ANR's environmental responsibilities. I am confident - even though coal markets continue to be challenged by both competitive and regulatory pressures - the company created by our Plan of Reorganization will have the structure, resources, and talent to successfully weather these challenges."
In its own press release, Contura Energy noted that it had acquired all of Alpha's operations and reserves in Northern Appalachia and Wyoming's Powder River Basin, along with three Central Appalachian mining complexes, including the Nicholas operation in Nicholas County. Contura also purchased Alpha's interest in the Dominion Terminal Associates coal export terminal in eastern Virginia.
Contura will be led by Kevin Crutchfield, former CEO of Alpha, as its chief executive officer
"Today marks the successful culmination of a complex and arduous process, made possible by the tireless work of countless employees, collaboration among a diverse stakeholder group, and the unwavering commitment of Contura's management team and owners to achieve a positive outcome," Crutchfield said. "The result is the creation of a strong operational asset base, well-positioned to serve unique customer needs in today's challenged coal market."
Reach Ken Ward Jr. at kward@wvgazettemail.com, 304-348-1702 or follow @kenwardjr on Twitter.