Alpha Natural Resources to Exit Bankruptcy

After months of fierce opposition and rocky negotiations, Alpha Natural Resources won approval from a federal judge to emerge from bankruptcy.

Alpha’s plan to exit bankruptcy hinges on the successful transfer of its core coal assets, including mining complexes in Virginia, West Virginia and Pennsylvania, to a new company formed by its top lenders. In exchange, the lenders will forgive Alpha’s debt. The new company, Contura Energy, Inc., has pledged to cover the full cost of reclamation at the sites it will acquire and put up to $100 million toward the reclamation of mines that the reorganized Alpha will continue to own.

The plan’s approval was also contingent on several agreements between Alpha, the United Mine Workers of America, state and federal regulators and environmental groups.

— Brian Sewell