The company, which filed its initial voluntary petitions in Virginia on August 3, is now awaiting a final order from the U.S. Bankruptcy Court.
The 18-month package provides for up to $692 million so that the company can continue operations. The financing is led by a group composed of the company’s first and second lien lenders.
“This expected approval follows a number of other final orders received from the court in recent weeks, including the authorization to continue paying employee wages and benefits,” officials noted.
Alpha Chief Financial and Strategy Officer Phillip Cavatoni said that finalizing the DIP with the support of its lenders is a “significant milestone” in its process to restructure.
“We believe that, in concert with existing liquidity, this package provides the financial flexibility needed to navigate the Chapter 11 process,” he said.
The case is In re Alpha Natural Resources Inc. 15-33896, U.S. Bankruptcy Court, Eastern District of Virginia (Richmond).
