Anker Coal starts debt restructuring talks

New York, May 16 - Anker Coal Group, Inc. said it has begun negotiations with its senior secured lenders and the trustee for its bonds over restructuring the debt.

The Morgantown, W.Va. coal miner said it is looking to modify the principal and interest payments.

Anker Coal also confirmed it did not make the $6.6 million interest payment due to bondholders on April 1.

But the company added that a majority of current bondholders have expressed their intentions to work with Anker to restructure the bond debt.

"While the company's coal business remains operationally sound and substantial coal reserves are in place for the future, historically low prices and a weak economy have impeded the company's ability to generate sufficient profits and the cash flow required to service its current bond debt obligations," Jack Teitz, recently appointed as Anker's president and chief restructuring officer, said in a news release.

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