James River Coal Co. is headquartered at Riverfront Plaza.
With its stock stuck in the doldrums and at least one big debt payment looming, a struggling Richmond coal company filed bankruptcy Monday.
Downtown-based James River Coal Co. sought Chapter 11 bankruptcy protection for itself and about three dozen of its mining and operations subsidiaries, many of which are based in Central Appalachia.
The company, which is publicly traded and headquartered at 901 E. Byrd St. at the Riverfront Plaza, said in a prepared statement late Monday that it will use the Chapter 11 process as it devises and implements a turnaround plan. That could include selling all or parts of the company and reworking its debt load.
Its initial bankruptcy filing listed $818.69 million in debt and assets of $1.06 billion. It listed between 10,000 and 25,000 creditors.
Its largest unsecured debts include a total of $464.5 million owed to U.S. Bank through several debt notes, according to the filings.
JRC announced the bankruptcy filing after the stock market had closed Monday. Its shares closed at $0.77 per share, down 4 percent.
The bankruptcy filing also comes weeks after the company said it would be late on its payment of a big chunk of debt that was due in early March. It said at the time it had 30 days to make a payment without being in default.
A message left for JRC chief executive Peter Socha was not returned by press time.
Socha explained in a prepared statement that the company is grappling with changes in the coal markets, including demand, regulations and improved methods to produce natural gas.
“The coal markets in the U.S. have changed dramatically during the past several years,” Socha said.
“We have made a number of large and significant changes to our mine operations and administrative overhead in response to the changes in the coal markets. Now we need to adjust our balance sheet and debt structure to align ourselves to the new industry.”
“We believe we will come out of this a much stronger and a more financially secure company,” he said.
The company said its normal operations will continue and that it has entered into an agreement for $110 million in “debtor-in-possession” financing. Such financing is typical in large corporate Chapter 11 filings and allows the company to continue running as it restructures.
It said it will continue paying employee wages, health care and other benefits. It said it intends to pay suppliers in full under normal terms.
Hunton & Williams attorney Tyler Brown is representing the company in its filing. It also hired New York law firm Davis Polk and Wardwell.
Perella Weinberg is JRC’s financial adviser as it restructures. Deutsche Bank Securities is serving as its investment banker and mergers and acquisitions advisor.
JRC mines, processes and sells thermal and metallurgical coal through mines throughout eastern Kentucky, southern West Virginia and southern Indiana. A Reuters report said the company idled seven mines in Central Appalachia last year due to weak demand for coal.
It hasn’t turned an annual profit since 2010 when its stock was trading at around $20 per share. Its stock hasn’t closed at over $1 per share since late January or early February.
The company has yet to file its annual report for 2013. It said last month the filing would be delayed as it pursued strategic alternatives. It lost $25.51 million in the third quarter and a total of $15 million through the first three quarters of 2013.
Securities and Exchange Commission filings show the company has in recent weeks missed interest payments on two large credit lines. It said it has 30 days to make the payments before being considered in default. Each grace period ends this month.
In April 2011, JRC closed on the acquisition of West Virginia-based International Resource Partners LP and Logan & Kanawha Coal Company. The value of the deals was around $475 million.
James River Coal Co. is headquartered at Riverfront Plaza.
With its stock stuck in the doldrums and at least one big debt payment looming, a struggling Richmond coal company filed bankruptcy Monday.
Downtown-based James River Coal Co. sought Chapter 11 bankruptcy protection for itself and about three dozen of its mining and operations subsidiaries, many of which are based in Central Appalachia.
The company, which is publicly traded and headquartered at 901 E. Byrd St. at the Riverfront Plaza, said in a prepared statement late Monday that it will use the Chapter 11 process as it devises and implements a turnaround plan. That could include selling all or parts of the company and reworking its debt load.
Its initial bankruptcy filing listed $818.69 million in debt and assets of $1.06 billion. It listed between 10,000 and 25,000 creditors.
Its largest unsecured debts include a total of $464.5 million owed to U.S. Bank through several debt notes, according to the filings.
JRC announced the bankruptcy filing after the stock market had closed Monday. Its shares closed at $0.77 per share, down 4 percent.
The bankruptcy filing also comes weeks after the company said it would be late on its payment of a big chunk of debt that was due in early March. It said at the time it had 30 days to make a payment without being in default.
A message left for JRC chief executive Peter Socha was not returned by press time.
Socha explained in a prepared statement that the company is grappling with changes in the coal markets, including demand, regulations and improved methods to produce natural gas.
“The coal markets in the U.S. have changed dramatically during the past several years,” Socha said.
“We have made a number of large and significant changes to our mine operations and administrative overhead in response to the changes in the coal markets. Now we need to adjust our balance sheet and debt structure to align ourselves to the new industry.”
“We believe we will come out of this a much stronger and a more financially secure company,” he said.
The company said its normal operations will continue and that it has entered into an agreement for $110 million in “debtor-in-possession” financing. Such financing is typical in large corporate Chapter 11 filings and allows the company to continue running as it restructures.
It said it will continue paying employee wages, health care and other benefits. It said it intends to pay suppliers in full under normal terms.
Hunton & Williams attorney Tyler Brown is representing the company in its filing. It also hired New York law firm Davis Polk and Wardwell.
Perella Weinberg is JRC’s financial adviser as it restructures. Deutsche Bank Securities is serving as its investment banker and mergers and acquisitions advisor.
JRC mines, processes and sells thermal and metallurgical coal through mines throughout eastern Kentucky, southern West Virginia and southern Indiana. A Reuters report said the company idled seven mines in Central Appalachia last year due to weak demand for coal.
It hasn’t turned an annual profit since 2010 when its stock was trading at around $20 per share. Its stock hasn’t closed at over $1 per share since late January or early February.
The company has yet to file its annual report for 2013. It said last month the filing would be delayed as it pursued strategic alternatives. It lost $25.51 million in the third quarter and a total of $15 million through the first three quarters of 2013.
Securities and Exchange Commission filings show the company has in recent weeks missed interest payments on two large credit lines. It said it has 30 days to make the payments before being considered in default. Each grace period ends this month.
In April 2011, JRC closed on the acquisition of West Virginia-based International Resource Partners LP and Logan & Kanawha Coal Company. The value of the deals was around $475 million.