The producer entered documentation of the offer on February 8 to the U.S. Bankruptcy Court for the Eastern District of Virginia, Richmond Division, and indicated that the Delaware-based lenders have agreed to serve as lead bidder.
The bid includes Alpha’s three biggest operations: the Eagle Butte and Belle Ayr operations in Wyoming, and the Cumberland mine in southwestern Pennsylvania. The mines produced about 19.7 million tons, 18.3 million tons and 7.5 million tons, respectively, last year.
The group is also seeking several other Alpha assets including the Nicholas, Toms Creek and McClure mines in West Virginia and Virginia. Its interest position in the Dominion Terminal in Newport News, Virginia, is also part of its proposal, as is the miner’s natural gas division.
The offer opens the floor to a competitive bidding process; other interested parties have until March 28 to submit bid packages, after which a bankruptcy judge will approve a sale. A previous October auction and January 27 sale plan were canceled.
Alpha officials recently said the company is hoping to emerge from bankruptcy by July.
The company’s Chapter 11 case documentation can be reviewed here.
