Armstrong Energy to review strategic alternatives, ends Q1 with liquidity of $77.4 million

By Lisa Kerner

Charlotte, N.C., May 12 – Armstrong Energy, Inc. will review strategic alternatives “aimed at strengthening its balance sheet and improving its long-term capital structure,” with the assistance of Maeva Group, LLC, according to its first-quarter earnings news release.

The company said it will not offer updates on the process unless and until it is necessary.

Armstrong believes that existing cash balances, cash generated from operations and borrowing capacity available under its asset-based revolving credit facility will be sufficient to meet working capital requirements, anticipated capital expenditures and debt service requirements in 2016.

As of March 31, Armstrong had available liquidity of $77.4 million, including $62.1 million of cash on hand and $15.3 million available under its revolving credit facility.

Due to the current economic environment, Armstrong took steps to rationalize its production to meet the current demand levels. On April 22, Worker Adjustment and Retraining Notification Act notices were delivered to employees of one of the company’s mining operations and related preparation plant in anticipation of closing of the Parkway underground mine. Armstrong expects coal production at the mine to cease by the end of the second quarter, the release stated.

Armstrong Energy is a St. Louis-based diversified producer of low-chlorine, high-sulfur thermal coal from the Illinois Basin.

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