Power & Gas: Restructuring: Alpha Natural Resources: Chapter 11 Bankruptcy Reorganization/Financial
Alpha Natural Resources (the Company) was the second-largest coal supplier among publicly traded coal producers with $4.3 billion of revenues in 2014 and 8,900 employees. The Company filed for bankruptcy in August 2015 with $4 billion of funded debt and emerged in July 2016 whereby certain assets of the Company were sold via §363 sale and the remaining assets emerged on a standalone basis.
Opportune LLP was engaged by the Company to provide crucial operational advisory services as it prepared for and commenced its Chapter 11 proceedings. Roles and responsibilities performed by Opportune professionals included:
- Liquidity management, monitoring and reporting
- Vendor communications and management, review and collaboration on development of long-term business plan
- Development and implementation of first day strategies
- Training and oversight of post-filing reporting requirement
- AP cutoff and post filing disaggregation of obligations
- §1113/ §1114 negotiations support
- Creation of Monthly Operating Report package
- Oversight of SOFA and Schedules aggregation and delivery
- Interfacing with creditor constituencies and serving as first responder and line of defense for all due-diligence requests, and operational analysis and support of section §363 sales and credit bidding process
Opportune added tremendous value in successfully executing a complex reorganization with extensive settlements reached across debt holders, state asset retirement obligation authorities, surety providers, employees, retirees, unions and multiple pension plans. Opportune professionals developed and trained multiple cross-functional teams across entire organization on post-filing operational procedures to ensure compliance with regulatory and otherwise mandated restrictions, as well as coordinated and bridged communications between numerous engaged professionals and the back-of-house operations. In addition, Opportune professionals negotiated with over 40 critical vendors to amicably resolve pre-petition claims with no disruption to operations.
Because of the complexities of restructuring, Opportune differentiates itself with our ability to bring experts from tax, process and technology, accounting and corporate finance. In virtually all of our engagements, a core restructuring team is supported by the diverse expertise within Opportune, for the benefit of our clients. For more information, click here.