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Mission Coal mining complexes’ acquisition by Murray Energy complete
By Wendy Van Sickle
Columbus, Ohio, April 29 – Mission Coal Co., LLC’s Oak Grove, Seminole Alabama and Maple Eagle Mining complexes in Alabama and West Virginia have been acquired by Murray Energy Corp. and its newly formed majority owned unrestricted subsidiary company, Murray Metallurgical Coal Holdings, LLC, according to a Murry Energy news release.
Murray was named as the successful bidder for the assets in March.
According to past a notice filed with the U.S. Bankruptcy Court for the Northern District of Alabama, which approved the transaction, the buyer is an entity that is 79% held by Murray Energy and 21% held by Javelin Global Commodities (UK) Ltd.
The assets at the three complexes were purchased for a total consideration of $264.7 million and the assumption of roughly $70 million in reclamation liabilities.
Of the $264.7 million in total consideration, $160 million was paid in the form of take-back paper issued by buyer to Mission Coal’s current debtor-in-possession lenders and $42.8 million will be paid in cash.
The buyer also funded $31.7 million in estimated cure costs, tax liabilities, post-bankruptcy payables and other administrative liabilities upon closing, and Javelin will cause $10 million in cash to be put on the buyer’s balance sheet to support the purchased assets following the closing.
Funding of the cash necessary for the transaction was to be provided by a $25 million equity contribution, a $25 million Javelin pre-payment facility and a $40 million Javelin working capital facility.
Murray Energy said its existing joint venture partner, Javelin Global Commodities (UK) Ltd., the minority owner of Murray Metallurgical Coal Holdings, will lead the global marketing efforts for the coal mines.
Mission is a Kingsport, Tenn.-based coal company. The company filed bankruptcy on Oct. 14, 2018 under Chapter 11 case number 18-04177.
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