April 3, 2018 Read More →

Ohio-Based Coal Company Murray Energy Says It Isn’t Going Bankrupt

S&P Global Market Intelligence:

Murray Energy Corp. “currently has no plans to file for bankruptcy protection,” despite a warning issued to government officials in 2017 that the coal producer would be forced to follow if one of its largest customers sought a court-supervised restructuring. That possibility became reality March 31.

In 2017, Murray Energy supplied about 6.7 million tons of coal to FirstEnergy Solutions Corp., or FES, the competitive generation subsidiary of FirstEnergy Corp. that filed for bankruptcy protection. That total, calculated using federal fuel contract data, represents about 11.7% of Murray Energy’s coal production portfolio and about 16.5% of the company’s Northern Appalachia coal production, based on data reported to the U.S. Mine Safety and Health Administration.

While the bankruptcy does not mean the power generator will immediately stop burning or buying coal, it could give FES more options that would affect its coal purchasing depending on how the company chooses to restructure.

In a statement, Murray Energy said the bankruptcy could have been avoided if the Federal Energy Regulatory Commission had “done its job” and enacted a rule proposed by the U.S. Department of Energy that would incentivize certain coal and nuclear plants to continue operating. The proposal FERC rejected was widely criticized by a variety of groups, including several in the coal generation sector.

More ($): ‘No plans’ to follow major coal buyer into bankruptcy, Murray Energy says 

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