Foresight said a plan was immediately put into place to suppress the event, including the injection of nitrogen and foam from the surface. Once the readings have dropped and have been stabilized, the company will develop a plan, alongside regulators, to re-enter the mine. Work had been ongoing to extract the mine’s longwall equipment from the current panel and to seal the district. Foresight officials noted on December 2 that if the issue were to extend for a prolonged period, it may see a negative impact on sales commitments.
In related FELP news, the company confirmed December 7 that it was holding discussions with its bondholders and secured credit facility lenders following a default. “In light of the current conditions and uncertainties, including continuing operational and market challenges and uncertainties regarding the outcome of the litigation and its impact on our liquidity, we are pursuing options to preserve liquidity and it is likely that we will suspend the distribution on our common units, commencing with the quarter ending December 31, 2015,” the company said that day.
“Absent the acceleration of indebtedness and assuming continued lending from our revolving credit facility lenders, we believe we will be able to meet our obligations as they come due. If discussions with the bondholders are unsuccessful, it could result in an adverse judgment being rendered.”
Murray Energy Corp. (MEC) has confirmed that it is not a party to the Foresight litigation. “This opinion does not impact any of MEC’s credit agreements in any way,” Broadbent said. “MEC has very strong relationships with its lenders, and will continue to foster those relationships.”
