| Alpha Natural Resources’ Possible Bankruptcy: What’s Next? | |
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Alpha Natural Resources Could Follow Walter Energy into Bankruptcy (Continued from Prior Part) The road ahead
Compared to Walter energy (WLTR), Alpha Natural Resources (ANRZ) is a much larger player with a more diversified asset base. So, ANRZ’s possible bankruptcy could have significant implications for the industry along with the company.
It’s likely that ANRZ’s eastern coal (both steam and metallurgical) production may be curtailed to save on costs and streamline operations. The company has in fact initiated such measures by sending notices to some employees in Appalachia. So, irrespective of bankruptcy, the company is expected to produce fewer tons of coal going forward if coal prices don’t pick up.
Who else is in the bankruptcy line?
Arch Coal (ACI) is desperately trying to stay solvent during this current difficult phase. ACI recently announced a reverse stock split to stay listed on the NYSE. Continued listing on the NYSE adds to ACI’s financial flexibility, offering access to the equity market. However, in the currently stressed scenario, a secondary offering is out of the question, and continued listing should be considered more as a long-term measure. So we feel that ACI is somewhat hopeful of survival.
Days ahead
The next few days are extremely important for the US coal (KOL) industry. Peabody Energy (BTU) is publishing its 2Q15 earnings on July 28. The company slashed its earnings forecasts due to a difficult 2Q15. Arch Coal (ACI) and Cloud Peak Energy (CLD) are also expected to publish their earnings in next few days. Keep visiting our coal page for the latest updates.
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Jim Walter Resources, Inc.
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CODE : WLT |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Jim Walter Res. is a producing company based in United states of america. |