Coal Industry’s Difficulties Prove a Windfall for Lawyers and Financial Types

first_img FacebookTwitterLinkedInEmailPrint分享Taylor Kuykendall for SNL:The prolonged decline in global coal prices has sent a number of major producers into bankruptcy, costing equity investors, lenders and suppliers billions. But for those firms overseeing producers’ reorganization efforts, the fallout has proven lucrative. According to S&P Capital IQ data, the six largest coal company bankruptcies since 2012 have spent at least $117.0 million for legal and financial advice on their reorganizations. That total does not account for the rest of the full list of about 50 coal company bankruptcies filed since 2012.The $117.0 million figure, by comparison, is larger than the market capitalization of coal miner Rhino Resource Partners LP and approaching the approximately $135 million market cap of Westmoreland Coal Co.Once considered a rising star in the U.S. coal industry, Illinois Basin producer Foresight Energy LP’s entire market value is less than two and a half times higher than the amount spent in those bankruptcies. Foresight may have come close to a bankruptcy filing itself recently, even filing a going concern notice during prolonged and frequently delayed negotiations with bondholders.Alpha Natural Resources Inc. appears to be the most expensive bankruptcy so far. The company has reported $28.4 million in bankruptcy adviser fees. Coming in at a very close second is Walter Energy Inc., also reporting bankruptcy professional fees of that magnitude.Peabody Energy Corp., reports it has already been billed for $27.5 million in bankruptcy advisory fees though it has just begun the bankruptcy process.Arch Coal Inc. has reportedly been billed $18.5 million in bankruptcy advisory fees. Patriot Coal Corp. reported it was billed $3.3 million in adviser fees for its first bankruptcy in 2012, only to be forced to spend another $10.9 million on a second bankruptcy just a few months later.Full article ($): Top coal bankruptcies spawn $117M market for financial, legal advisers Coal Industry’s Difficulties Prove a Windfall for Lawyers and Financial Typeslast_img read more

Cartoon: October 15, 2014

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