Another coal giant may be about to go under
According to a Bloomberg report on Thursday, Alpha Natural Resources is planning to file for bankruptcy as soon as Monday.
Bloomberg reports, citing sources familiar with the matter, that the company's senior lenders including Citigroup may give it another loan to see it through the bankruptcy.
Earlier this month, the Wall Street Journal reported that Alpha Natural was planning to file for bankruptcy. On the same day, Walter Energy filed for Chapter 11 bankruptcy so that it can resturcture its debt with lenders.
These are just two of several coal companies that have recently filed for bankruptcy. The price of mettalurgical coal crashed to the lowest in a decade last month; there's slowing demand for coal as more people turn to natural gas instead.
And according to Bloomberg, Alpha Natural could make a bakruptcy announcement early next week. The company hasn't earned a profit in five years, and will miss a debt payment of $109 million due August 1, the report said.
The company's shares have been delisted from the New York Stock Exchange for being too low. In the over-the-counter market on Thursday, they fell 23%.
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