Alpha Natural Resources Files For Bankruptcy
Alpha Natural Resources Inc., is one of the biggest coal companies in America, and recently the company has decided to file for bankruptcy. The company's filing comes just as the president of the United States is about to unveil new measures that are aimed at cutting greenhouse gas emissions that are produced from coal-fired power plants.
The company has blamed regulatory standards that favor renewable energy as the reason why it has decided to file. Not only that, but the price for its coal has been tumbling, and that too has contributed to the decision to file bankruptcy.
When it comes to metallurgical coal that is used to create steel, Alpha is the third largest supplier of it. However, a slowdown in China has also affected Alpha's business.
The company's stock market value has also taken a huge hit, as pink sheet shares were recently trading at 3.7 cents.
In 2011, Alpha became the second largest publicly coal producer in America, and this was after they purchased Massey Energy Co, which was a deal that was worth more than $ billion. Alpha was ordered to cover Blankenship, the former chief executive of Massey, legal costs, as he found himself having to defend himself against charges. The criminal charges were related to a mine explosion that took place in 2010.
Tougher regulations have impacted the coal industry, as around 400 coal-fired power plants have decided to close its doors over the last few years, and even more could close down in the future.
There are more than 50 surface mines and underground mines that Alpha and its affiliates operate, and they operate more than 20 facilities located throughout West Virginia, West Virginia, Kentucky, Wyoming and Pennsylvania.
The company employs thousands of full-time employees. In matter of fact, they have around 8,000 employees who work for them on a full-time basis.
4:00 p.m. Report- Alpha Natural Resources files for bankruptcy