Ohio-based coal giant Murray Energy Corp. has filed for Chapter 11 bankruptcy protection to exchange the company’s debt for its assets.
As part of the reorganization deal, the group of creditors — who hold more than 60 percent of about $1.7 billion in claims against the company — also will provide $350 million to allow Murray Energy to continue operations in bankruptcy, subject to court approval.
Murray Energy and its subsidiaries have 7,000 employees and operate 17 active mines in Alabama, Illinois, Kentucky, Ohio, Utah and West Virginia. It’s the fifth coal company to go bankrupt this year, despite the Trump’s Administration efforts in supporting and attempts to revive the sector. Between President Donald Trump’s 2017 inauguration and May 2019, 51 coal plants have closed. Coal has become unable to compete with cheaper natural gas and renewable energy. Also, more and more power companies have been switching to cleaner alternatives.
U.S. coal exports
