October 17, 2019
As previously disclosed, on October 2, 2019 Murray Energy Corporation (“Murray Energy” or “the Company”) entered into forbearance agreements with lenders holding in excess of 50% of outstanding loans under its Superpriority Credit and Guaranty Agreement and with lenders holding in excess of 50% of outstanding loans under its ABL and FILO credit facilities. Under the terms of the forbearance agreements, the lenders 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 September 30, 2019.
On October 15, 2019, Murray Energy and its lenders amended the previously disclosed forbearance agreements, extending the forbearance period through 11:59 p.m. (New York time) on October 28, 2019, unless further extended. The forbearance agreements will terminate upon the earlier of the end of the forbearance period or the occurrence of a specified forbearance termination event.
With discussions with its lenders and noteholders regarding strategic options to strengthen the Company’s business, liquidity and capital structure ongoing, the Company elected not to make the cash interest payments due on October 15, 2019 to holders of the Company’s 12.00% Senior Secured Notes due 2024 and 11.25% Senior Secured Notes due 2021.
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Safe Harbor Statement
This release includes forward-looking statements. A variety of factors could cause actual results to differ materially from the expectations expressed in this release, including (i) market demand for coal and electricity; (ii) geologic conditions, weather and other risks of coal mining that are beyond our control; (iii) claims and litigation brought against us, (iv) the coverage provided by our insurance against certain liabilities; (v) our ability to extend existing long-term coal supply agreements or enter into new agreements in the future; (vi) an increase in competition within our industry and with producers of competing energy sources; (vii) the accuracy with which we are able to estimate our coal reserves and changes in the value of our proven and probable coal reserves; (viii) availability and pricing of mining and other industrial supplies; (ix) negotiation of labor contracts, employee relations and workforce availability; (x) transportation availability, performance and costs; (xi) loss of key customers; (xii) our ability to obtain or renew surety bonds on acceptable terms; (xiii) possibility of strikes or other work stoppages at our one unionized mine; (xiv) obligations relating to benefits for retired employees and under pension plans; (xv) our ability to retain key executives and attract and retain qualified employees; (xvi) the impact of future legislation and changes in regulations, governmental policies and taxes, including those affecting permitting, mine safety and health, and land rights of mining operators and those aimed at reducing greenhouse gas emissions; (xvii) our substantial indebtedness and ability to comply with restrictions imposed by our debt arrangements and negotiate arrangements with our lenders and noteholders, (xviii) the risk that our lenders and/or noteholders could accelerate our debt after an event of default, including the events of default arising from the missed amortization and interest payments due on September 30, 2019.