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AEI Resources exits chapter 11 with $250 million financing facility
By Sara Rosenberg
New York, May 9 - AEI Resources Holding Inc., now Horizon Natural Resources Inc., emerged from Chapter 11 after 10 weeks. During the restructuring process, the coal producing company received a $250 million exit financing facility from Deutsche Bank for capital expenses and day-to-day operations, according to the company.
"We accomplished a great deal in a very short time," said Donald Brown, chairman, chief executive officer and president, in a news release. "We now have a much stronger capital structure, and we are able to focus on providing a more secure and brighter future for employees, suppliers, customers and shareholders."
Under the restructuring plan, pre-petition debt of about $1.3 billion was reduced to about $925 million of restructured debt, according to the release.
"These will be the primary guideposts from which we will not stray," Brown said. "Safety and loss control will be a top priority of all employees. Management will focus on obtaining maximum cost reductions and productivity improvements. We will seek to further decrease debt and thereby enhance financial flexibility."
Other changes under the restructuring include the appointment of a new board of directors, the company's name change to Horizon Natural Resources and Brown also taking the title of president.
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