Murray Energy misses loan payment; lenders forbear through Oct. 14

By Wendy Van Sickle

Columbus, Ohio, Oct. 2 – Murray Energy Corp. entered into forbearance agreements with lenders holding more than 50% of the outstanding loans under its superpriority credit and guaranty agreement and with lenders holding more than 50% of the outstanding loans under its ABL and FILO credit facilities, according to a Wednesday news release.

The company also said it has elected not to make the amortization and interest payments due on Sept. 30 under its superpriority credit and guaranty agreement.

Under the forbearance agreements, the lenders have agreed to forbear from exercising any and all remedies available to them in respect of any event of default arising from the missed amortization and interest payments due on Sept. 30.

The forbearance period expires at 11:59 p.m. ET on Oct. 14, unless extended, and will terminate upon the earlier of the end of the forbearance period or the occurrence of a specified forbearance termination event.

“The forbearance agreements are expected to allow Murray Energy to continue discussions with its lenders about various strategic options to strengthen the company’s business, improve its liquidity position, deleverage its balance sheet, and achieve a more sustainable capital structure that supports the company's long-term business plan and results in long-term value generation for the benefit of its employees, customers, vendors and other key stakeholders,” the news release states.

Murray Energy is a Saint Clairsville, Ohio, coal company.

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