ST. LOUIS, Nov. 1, 2017 /PRNewswire/ -- Armstrong Energy, Inc., ("Armstrong") a producer and marketer of thermal coal in the Illinois Basin, announced today that Armstrong and substantially all of its wholly owned subsidiaries (collectively, the "Company") have filed voluntary petitions for reorganization under chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the Eastern District of Missouri. The Company took this action in order to consummate the transfer of substantially all of its assets (the "Transaction") to a new entity to be jointly owned by Knight Hawk Holdings, LLC ("Knight Hawk") and the Company's secured noteholders.
Armstrong expects its mining operations and customer shipments to continue in the ordinary course throughout the chapter 11 process. "We remain firmly committed to serving our customers and to being a good employer by maintaining safe, productive operations as we undertake this process," said Armstrong Executive Chairman, J. Hord Armstrong, III. "We are confident that this court-supervised process is the best way to close the Transaction expeditiously," added Armstrong. Upon the close of the proposed Transaction, Knight Hawk will take control of Armstrong's ongoing operations.
The Company filed various motions with the Bankruptcy Court, requesting authorization to continue paying employee wages and providing health care and other benefits. Armstrong has also asked for authority to continue existing customer programs and intends to pay suppliers in full under normal terms for goods and services provided after the filing date of November 1, 2017.
Additional information is available on Armstrong's website at www.armstrongenergyinc.com or by calling Armstrong's Restructuring Hotline, toll-free in the U.S., at (866) 416-0556. Also, court filings and other documents related to the reorganization proceedings are available on a separate website administered by Armstrong's claims agent, Donlin Recano & Company, Inc., at http://www.donlinrecano.com/armstrong.
Kirkland & Ellis, LLP is serving as legal advisor, MAEVA Group LLC is serving as financial advisor, and FTI Consulting, Inc. ("FTI") is providing interim management services to Armstrong in connection with the Transaction. Alan Boyko, a Senior Managing Director of FTI, has been named Chief Restructuring Officer of Armstrong.
About Armstrong Energy, Inc.
Armstrong is a producer of low-chlorine, high-sulfur thermal coal from the Illinois Basin, and operates both surface and underground mines. As of June 30, 2017, Armstrong controlled over 445 million tons of proven and probable coal reserves in Western Kentucky and currently operates five mines. Armstrong also owns and operates three coal processing plants and river dock coal handling and rail loadout facilities, which support its mining operations.
Forward Looking Statements
Various statements contained in this release, including those that express a belief, expectation or intention, as well as those that are not statements of historical fact, are forward-looking statements. These forward-looking statements may include projections and estimates concerning the timing and success of specific projects and our future production, revenues, income and capital spending. Our forward-looking statements are generally accompanied by words such as "estimate," "project," "predict," "believe," "expect," "anticipate," "potential," "plan," "goal" or other words that convey the uncertainty of future events or outcomes. The forward-looking statements in this release speak only as of the date of this release; we disclaim any obligation to update these statements unless required by law, and we caution you not to rely on them unduly. We have based these forward-looking statements on our current expectations and assumptions about future events. While our management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond our control. These and other important factors may cause our actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements.
SOURCE Armstrong Energy, Inc.