Alpha didn’t give data on future closings in Monday’s filings, saying only that it wouldn’t immediately sell any mines. The company has about 8,000 employees, down 45 percent from a spike after the Massey purchase. More from Bloomberg.com: California Has a Plan to End the Auto Industry as We Know It Details emerging ahead of the EPA release show pressure from Washington to curb coal’s use will only intensify over the next 15 years, escalating the industry’s fight for survival. The plan could go into effect in the next month or two. Research firm SNL Energy says more than three dozen coal operations have been forced into bankruptcy in just over three years. Most have been small, but some of the biggest firms have also succumbed, including Walter Energy Inc., Patriot Coal Corp. and James River Coal Co. -- Patriot and James River for the second time. Value ShrinksThe combined market value of U.S. coal company shares shrank to about $12 billion in late July from $78 billion in 2011, according to data compiled by Bloomberg. In July, Alpha said it had drawn $445 million from a revolving loan, mostly to fund its business, and warned investors that it wouldn’t pay $109 million on notes related to the Massey deal due in August. The company said in a statement Monday that it had secured $692 million in bankruptcy financing, arranged by Citigroup Inc. U.S. coal companies invested billions of dollars to expand their reserves in 2011 as prices for “met” coal went as high as $330 a metric ton. Then demand from China suddenly slowed and the price of natural gas dropped, cutting into their business. Met coal now sells for $93 a metric ton. A strong dollar has also kept exports in check. Quarterly LossesAlpha lost around $214 million on operations in the March quarter while sales fell to $842 million from $1.1 billion a year earlier, according to a regulatory filing. Financial woes are breeding new problems. In May, Wyoming said the company can no longer simply promise to fulfill its environmental cleanup obligations in the state, giving it until late August to come up with about $411 million in new insurance. Alpha said Monday that it hoped to resolve the issue without further hurting creditors. Peabody Energy Corp., the biggest U.S. coal company, has also struggled, reporting its seventh-consecutive quarterly loss on July 28. Since May, it’s cut a quarter of corporate and regional staff, sold assets and suspended its quarterly dividend. Alpha listed assets of $10.1 billion and debts of $7.1 billion in its Chapter 11 filing Monday in Richmond. Steelhead Partners LLC is listed as Alpha’s biggest shareholder, with 9.9 percent of the stock. Creditor GroupsThe largest unsecured creditor groups are holders of $584.9 million of senior notes due in 2021 and $576.9 million of notes due in 2019. The largest trade debt listed is $7.81 million owed to Joy Global Underground Mining LLC and an affiliate. Another creditor is former Massey CEO Donald Blankenship, who’s facing criminal charges that he conspired to ignore basic safety measures in connection with a deadly 2010 mine explosion. A judge ordered Alpha in May to cover Blankenship’s legal fees. The company listed an estimated $3.5 million in litigation costs for Blankenship in the bankruptcy filing. Alpha’s advisers include law firm Jones Day, Rothschild Group and Alvarez & Marsal Holdings LLC. The case is In re Alpha Natural Resources Inc. 15-33896, U.S. Bankruptcy Court, Eastern District of Virginia (Richmond). More from Bloomberg.com
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