Gordian Group advised Anker Coal in connection with the restructuring of its capital structure, which included a private exchange offer with a group of noteholders, the private placement of additional notes and additional liquidity from the senior secured lenders that allowed management the capability to implement its new operating plan and strategy.
Anker Coal Group
CLIENT: Anker Coal Group
Anker was a producer of coal used principally for electricity generation and, to a lesser extent, for steel production. The company owns substantial coal reserves and operates a diverse portfolio of eight nonunion deep and surface mines located in West Virginia and Maryland. Due to operating problems and a revised operating strategy, the company experienced severe liquidity problems.
Gordian Group was engaged in 1999 to advise the company with its assessment of the financial alternatives available and to assist the company in negotiating the restructuring of all, or a portion, of its existing indebtedness (public senior notes and senior secured revolving credit financing) and obtaining supplemental credit facilities. Over the next several months, Gordian Group reviewed the Company operating plan, developed views and financial alternatives for presentation to the Board of Directors and was authorized to engage in discussions with representatives of a group of noteholders and the Company’s senior secured lenders.
These negotiations culminated in a private exchange offer with a group of noteholders, the private placement of additional notes and enhanced availability from the senior secured lenders. This increased liquidity allowed management to implement its new operating plan and strategy.