Armstrong Energy, Inc. Announces Agreement In Principal Regarding A Comprehensive Balance Sheet Restructuring
ST. LOUIS, Oct. 5, 2017 /PRNewswire/ -- Armstrong Energy, Inc. ("Armstrong" or the "Company"), a producer and marketer of coal in the Illinois Basin in Western Kentucky, today announced that it has reached an agreement in principle with the holders of approximately $156 million in aggregate principal amount (representing approximately 78% of the outstanding principal amount) of the Company's senior secured notes due 2019 (the "Supporting Noteholders"), Knight Hawk Holdings, LLC ("Knight Hawk"), as well as the Company's largest shareholder and the Company's primary mineral rights provider on the terms of a strategic transaction that will provide for a comprehensive balance sheet restructuring.
The Company's primary mineral rights provider has agreed to support the restructuring with a new go-forward royalty agreement related to its mineral rights. The agreement in principle is subject to final documentation, due diligence, and customary approvals. In conjunction with the agreement in principle, the Company and the Supporting Noteholders intend to execute an additional forbearance agreement through October 31, 2017.
Armstrong expects its customer shipments and mining operations to continue in the ordinary course during the restructuring process contemplated by the agreement. J. Hord Armstrong, III, the Company's Executive Chairman, said that "Armstrong has sufficient liquidity to continue normal operations during the restructuring process" and that "this agreement in principle with our stakeholders follows months of intensive negotiations and is designed to both maximize creditor recoveries and strengthen Armstrong's balance sheet."
About Armstrong Energy, Inc.
Armstrong is a producer of low chlorine, high sulfur thermal coal from the Illinois Basin, with 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.
Share this article