Foresight Energy reports adverse opinion in bondholder litigation

By Wendy Van Sickle

Columbus, Ohio, Dec. 4 – Foresight Energy LP said it was notified of an adverse opinion in litigation filed in May 2015 in the Delaware Court of Chancery by the trustee for the bondholders of its 2021 senior notes.

The litigation alleges that Murray Energy’s acquisition of a 34% non-controlling interest in Foresight and of an option to purchase an additional 46% interest in Foresight triggered a change of control under the notes’ indenture, thereby requiring the issuer to make an offer to purchase the notes at 101 plus accrued interest.

“We believe this suit is without merit and have filed a motion for judgment on the pleadings, seeking judgment in our favor,” Foresight wrote in a 10-Q filed with the Securities and Exchange Commission.

In a Friday press release, Foresight said the court sided with the bond trustee and that the company is evaluating its options in light of the opinion.

Foresight is a coal producer based in St. Louis.

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