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phil
April 15th, 2014 at 11:58 pm
With no end in sight to cash burn, Alpha Natural creditors’ alarm grows
06:45 PM ET · ANR
• The plunge in coal prices that has sent smaller competitors into bankruptcy is alarming bondholders in Alpha Natural Resources (ANR), as the no. 2 U.S. coal producer consumes more cash than ever, Bloomberg reports.
• ANR’s $3.43B of debt equals 37.9x EBITDA, highest among U.S. coal producers, and its bonds have lost more than 9% this year, the most among met coal producers in the Bloomberg High Yield Corporate Bond Index.
• “It’s going to get worse before it starts getting better,” one analyst says. “It’s a completely oversupplied market.”
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