(BUSINESS WIRE)
-- As previously disclosed, on October 2, 2019 Murray Energy
Corporation (“Murray Energy” or “the Company”) entered into forbearance
agreements with lenders holding in excess of 50% of outstanding loans
under its Superpriority Credit and Guaranty Agreement and with lenders
holding in excess of 50% of outstanding loans under its ABL and FILO
credit facilities. Under the terms of the forbearance agreements, the
lenders agreed to forbear from exercising any and all remedies available
to them in respect of any event of default arising from the missed
amortization and interest payments due on September 30, 2019.
On October
15, 2019, Murray Energy and its lenders amended the previously disclosed
forbearance agreements, extending the forbearance period through 11:59
p.m. (New York time) on October 28, 2019, unless further extended. The
forbearance agreements will terminate upon the earlier of the end of the
forbearance period or the occurrence of a specified forbearance
termination event.
With
discussions with its lenders and noteholders regarding strategic options
to strengthen the Company’s business, liquidity and capital structure
ongoing, the Company elected not to make the cash interest payments due
on October 15, 2019 to holders of the Company’s 12.00% Senior Secured
Notes due 2024 and 11.25% Senior Secured Notes due 2021.
Further inquiries should be directed to media@coalsource.com.
Safe Harbor Statement
This release
includes forward-looking statements. A variety of factors could cause
actual results to differ materially from the expectations expressed in
this release, including (i) market demand for coal and electricity; (ii)
geologic conditions, weather and other risks of coal mining that are
beyond our control; (iii) claims and litigation brought against us, (iv)
the coverage provided by our insurance against certain liabilities; (v)
our ability to extend existing long-term coal supply agreements or
enter into new agreements in the future; (vi) an increase in competition
within our industry and with producers of competing energy sources;
(vii) the accuracy with which we are able to estimate our coal reserves
and changes in the value of our proven and probable coal reserves;
(viii) availability and pricing of mining and other industrial supplies;
(ix) negotiation of labor contracts, employee relations and workforce
availability; (x) transportation availability, performance and costs;
(xi) loss of key customers; (xii) our ability to obtain or renew surety
bonds on acceptable terms; (xiii) possibility of strikes or other work
stoppages at our one unionized mine; (xiv) obligations relating to
benefits for retired employees and under pension plans; (xv) our ability
to retain key executives and attract and retain qualified employees;
(xvi) the impact of future legislation and changes in regulations,
governmental policies and taxes, including those affecting permitting,
mine safety and health, and land rights of mining operators and those
aimed at reducing greenhouse gas emissions; (xvii) our substantial
indebtedness and ability to comply with restrictions imposed by our debt
arrangements and negotiate arrangements with our lenders and
noteholders, (xviii) the risk that our lenders and/or noteholders could
accelerate our debt after an event of default, including the events of
default arising from the missed amortization and interest payments due
on September 30, 2019.
View source version on businesswire.com: https://www.businesswire.com/news/home/20191016005800/en/
Contacts
Jason D. Witt
(740) 338-3100
media@coalsource.com
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