https://www.miningweekly.com
Coal|Energy|Financial|Health
Coal|Energy|Financial|Health
coal|energy|financial|health

Lender says Murray Energy violated deal in ‘brazen’ loan default

14th May 2020

By: Bloomberg

  

Font size: - +

Murray Energy allegedly violated a bankruptcy financing agreement after manipulating financial information, according to court papers filed by one of its lenders.

GACP Finance, owed some $90-million under a loan tied up in Murray Energy’s bankruptcy financing package, delivered a notice of default to the coal miner on Wednesday, court papers show. The lender alleges Murray improperly included noncoal receivables in a financial report in an attempt to remain compliant with a credit agreement.

The lender is seeking a court order barring anyone from interfering with its ability to freeze the Murray Energy bank accounts that serve as collateral for its loan. GACP called Murray’s actions a “brazen attempt” to “improperly manipulate” the weekly financial report, adding the current assets underpinning its loan “are rapidly disappearing at an alarming rate.”

Murray Energy, America’s largest privately-held coal producer, filed for bankruptcy in October following a years-long decline in demand for coal. Rival coal producer Consol Energy is urging a bankruptcy judge to convert Murray’s case to Chapter 7, a liquidation. Murray itself previously said it may have to liquidate unless it could cut health-care payments to retirees.

A representative for Murray didn’t immediately respond to requests for comment. A GACP representative declined to comment beyond the court filings.

The case is Murray Energy Holdings Co., 19-bk-56885, US Bankruptcy Court Southern District of Ohio (Columbus).

Edited by Bloomberg

Comments

Projects

Image of lithium ore stockpile
Lithium conversion plant, Australia
Updated 2 hours 31 minutes ago By: Sheila Barradas
Aerial view of the Amapá mine
Amapá iron-ore project, Brazil
Updated 2 hours 31 minutes ago By: Sheila Barradas

Showroom

Rentech
Rentech

Rentech provides renewable energy products and services to the local and selected African markets. Supplying inverters, lithium and lead-acid...

VISIT SHOWROOM 
Booyco Electronics
Booyco Electronics

Booyco Electronics, South African pioneer of Proximity Detection Systems, offers safety solutions for underground and surface mining, quarrying,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.068 0.107s - 89pq - 2rq
1:
1: United States
Subscribe Now
2: United States
2: