Horizon Natural Resources back in Chapter 11

New York, Nov. 14 - Horizon Natural Resources Co. filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code, just six months after emerging from a previous Chapter 11 filing.

Horizon said it had obtained a $350 million senior secured debtor-in-possession facility from Deutsche Bank Trust Co. Americas AG to fund its turnaround and continuing operations.

The Ashkand, Ky. coal miner said it had suffered a rapid decline in liquidity due to the weak economy, which reduced demand, increased inventories at customers earlier in the year and the effect of an increasingly uncompetitive capital structure.

Horizon said that as of Oct. 31 it had assets with a book value of $2.5 billion and liabilities of $2.1 billion.

Horizon, previously AEI Resources Holding Inc., emerged from its previous Chapter 11 filing in May.

During the previous restructuring its debt was reduced to $925 million from $1.3 billion.

The latest filing is in the U.S. Bankruptcy Court for the Eastern District of Kentucky in Lexington.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.