Amherst Advises on Bankruptcy Proceedings Involving Alpha Natural Resources - Amherst Partners
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Amherst Advises on Bankruptcy Proceedings Involving Alpha Natural Resources

Amherst Advises on Bankruptcy Proceedings Involving Alpha Natural Resources

Amherst Partners, LLC (“Amherst”) is pleased to announce the successful settlement of certain environmental claims raised in the Chapter 11 bankruptcy proceedings involving coal mine operator Alpha Natural Resources, Inc. (“Alpha”). Amherst’s Restructuring Advisory Group acted as exclusive financial advisor to environmental law firm EarthJustice and its clients in connection with the settlement.

About EarthJustice

EarthJustice is a leading nonprofit environmental law organization. Formed in 1971 and headquartered in San Francisco, California, the organization is fully funded through donations and pursues cases centered on environmental preservation. In the Alpha bankruptcy case, EarthJustice and the bankruptcy law firm Goldstein & McClintock represented Sierra Club, Ohio Valley Environmental Coalition and West Virginia Highlands Conservancy (collectively, the “Environmental Groups”).

About Alpha Natural Resources

Founded in 2002 and publicly traded since 2005, Alpha is one of the nation’s leading coal producers. Alpha’s revenue peaked in 2011 at just under $7 billion. In August, 2015, Alpha and its 150 affiliates filed a voluntary petition for relief pursuant to Chapter 11 of the U.S. Bankruptcy Code. Alpha emerged from bankruptcy in July, 2016 with approximately18 mines and 8 plants in West Virginia and Kentucky.

About The Engagement

Amherst’s Restructuring Advisory Group was engaged to advise EarthJustice and the Environmental Groups with regard to the viability of the bankruptcy exit model and restructured entities proposed by Alpha, including the funding of certain environmental obligations addressed in the settlement reached between Alpha and the Environmental Groups. Under the terms of the settlement, Alpha must pay approximately $7.5 million over two years to fund land and stream restoration projects in West Virginia. Alpha also must provide more than $1 million of in­kind services by donating equipment time and employee time to carry out the restoration projects. Finally, Alpha agreed to give up 53 million tons of coal in Westmoreland and Fayette Counties, PA, to a nonprofit for the purpose of preventing that coal from ever being mined or burned.

About Amherst Partners

With a track record that spans over 20 years, Amherst Partners is one of the Midwest’s most reputable boutique restructuring advisory and investment banking firms. Among its core services, Amherst provides middle­market companies with significant financial advisory expertise for corporate restructurings, business divestitures, acquisitions and corporate finance transactions. Our professionals share a commitment to developing a “trusted advisor” relationship with our clients and referral partners, and have amassed an extraordinary track record of success in our restructuring, merger & acquisition advisory and capital raising practices.