The slow death of the American coal industry has forced Murray Energy, the largest private coal company in the United States, to apply for protection from bankruptcy.
Murray Energy is no longer able to give the payments to the creditors and the company entered into an agreement for deferment of debt, which will allow her to negotiate the restructuring. But this grace period has passed, and Murray Energy still are unable to pay their bills. S & P Global Ratings downgraded the company’s credit rating to “default”, and now it is threatened with complete ruin.
Coal company entered into a restructuring agreement with some of its creditors, which is about 60% of liabilities in the amount of $ 1.7 billion. On Tuesday, the company announced that it has received a loan in the amount of $ 350 million to maintain its business in a bankruptcy.
Previously, a number of coal companies have already declared bankruptcy, but Murray Energy is one of the most influential and well-connected firms in the industry. The company has 7,000 employees, it owns 17 operating mines in Alabama, Illinois, Kentucky, Ohio, Utah and West Virginia.