According to several reports, including one in The Wall Street Journal citing unidentified sources familiar with the talks, Alpha is negotiating with its loan holders and senior bondholders to help it stay afloat following its Chapter 11 filing that could come next month.
The loan could total between $300 million and $400 million, one source said, adding that jointly providing the loan may help align the creditor classes’ interests and make restructuring easier.
The group also said in the report that Alpha, which claimed about $3.1 billion in long-term debt and $1.8 billion in liquidity as of March 31, is still examining its options and bankruptcy is not certain.
On Thursday, Virginia-based Alpha confirmed that the New York Stock Exchange (NYSE) had suspended trading of Alpha’s shares. As NYSE moves to delist ANR, the company is able to file an appeal.
The news of Alpha’s problems broke just hours after Alabama-based miner Walter Energy announced this week it was filing for Chapter 11 bankruptcy.