Obama’s Gift To You: ANRZ Alpha Natural Resources Bankrupt. Next?…

Just a quick note that Alpha Natural Resources, once a very good investment, has filed for bankruptcy. Yes, partly due to fracking and cheap natural gas. But, IMHO, much more due to Obama and the EPA and their “war on coal”.

Here is a chart of Alpha Natural Resources showing where they were 5 years ago, near the start of the Obama Reign Of FUD (Fear, Uncertainty, and Doubt – a strategy popularlized by IBM in the ’60s and now well worn by the Democrats, U.N., and Global Fear Mongers pushing “Global Warming” fear – though with less room for doubters in their tent).

Original from: http://stockcharts.com/h-sc/ui

Alpha Natural Resources 5 years under Obama

Alpha Natural Resources 5 years under Obama

Starts out near $60 a share. Now it’s at about 4 ¢ a share. Now that’s wealth redistribution alright. All the stockholder wealth redistributed to the banks and bond holders.

Here’s the story behind it:

http://www.marketwatch.com/story/alpha-natural-resources-files-for-chapter-11-2015-08-03

Alpha Natural Resources files for Chapter 11
By Matt Jarzemsky

Published: Aug 3, 2015 12:56 p.m. ET

The ailing U.S. coal industry got another black mark Monday morning, when Alpha Natural Resources Inc. filed for chapter 11 bankruptcy protection.

The Bristol, Va., company filed for chapter 11 protection in U.S. Bankruptcy Court in Richmond, Va., brought down by plummeting coal prices and high debt from its 2011 acquisition of Massey Energy.

The Wall Street Journal reported Sunday that Alpha, with assets of $10.1 billion and liabilities of $7.1 billion, would be entering chapter 11 as part of a plan to cut its debt load, another victim of the severe slump in coal prices that continues to wreak havoc on the industry.

“While a difficult decision, this voluntary Chapter 11 filing is the right strategy at the right time for the future of our business,” said Alpha Chairman and Chief Executive Kevin Crutchfield Monday.

Alpha, one of the largest U.S. coal producers, isn’t entering chapter 11 with a restructuring plan in place, but did say in a filing accompanying its bankruptcy petition that it doesn’t want to immediately sell itself “at a low point in the coal market.” The Wall Street Journal reported Sunday that the company will likely sell some of its best mines or turn them over to creditors and close others during bankruptcy, citing people familiar with the matter.

The buy of Massey no doubt added the debt load that made it hard to just coast through the coal price collapse (due to coal power plant shutdowns and conversion to natural gas). But the night is young… and others without that excuse look quite similar on the charts.

Arch Coal under Obama and the Democrats

Arch Coal under Obama and the Democrats

From $32 / share to 18 ¢ in one smooth flow. Thanks Obamanomics!

Coming soon to an industry employing you…

Please note that this is not unique. Alpha N.R. isn’t even the first in the group to actually declare bankruptcy. The whole group (all of our real energy companies, actually) is under strong pressure and government driven threat of destruction. BTU Peabody coal, one of THE largest, is at $1.09 today (so forbidden for many funds to buy as it is under $5 / share) down from $16 a year ago and $70 just four years back. Yup, that Obama quote about coal fired power and “bankrupt” shows he is a man of his word…

Is that the job of Washington D.C.? To destroy wealth? How many pensioners just lost their pension? How many mine workers their jobs? How about other folks? The stock specialist who traded Alpha Natural? The middleman who bought and sold their coal? The trains and drivers who hauled it? The powerplant workers who used it? Just how many were taken out back and economically shot in the head by an egotistical President who was just so sure he was right and they were wrong?

Stupidity knows no bounds… And Ms. Clinton want’s to do that on steroids, per her Global Warming speech.

More on Arch, and the question of “are they next?”, here:

http://seekingalpha.com/article/3389505-arch-coal-additional-thoughts-on-debt-exchange-bankruptcy-and-coal-prices

Arch Coal – Additional Thoughts On Debt Exchange, Bankruptcy, And Coal Prices
Aug. 3, 2015 8:31 AM ET | 10 comments | About: Arch Coal Inc (ACI)

Summary

Debt exchange is essential for Arch Coal.

The company’s earlier contracted coal will mitigate the impact of current coal prices.

Arch Coal won’t proceed with an Alpha Natural Resources-like early bankruptcy filing.

In my view, conference calls are even more important than earnings reports for companies in Arch Coal’s (NYSE:ACI) situation. The tension around the company increased after the release of the Bloomberg report, which stated that fellow miner Alpha Natural Resources (NYSE:ANR) could file for bankruptcy as soon as this Monday. In this light, it was very interesting to hear what Arch Coal’s executives have to say about the future of their company, whose stock is trading for cents after being above $3 a year earlier.
[…]
Another item of particular interest is whether bankruptcies of miners like Walter Energy (NYSE:WLT) and Alpha Natural Resources will lead to the reduction of coal supply. The above mentioned report by Bloomberg suggests that the bankruptcy plan included shutting mines. Arch Coal’s CEO stated that he thought supply from the companies that emerge from bankruptcy would be a lot lower. This topic has been a source of major debate recently. The perceived catastrophic scenario implies that miners emerge from bankruptcy debt-free, don’t cut production, and pressure the remaining players to file for bankruptcy protection in order to gain the same competitive advantage.

Note the reference to Walter Energy, also bankrupt. Their ticker is now WLTGQ as they have been moved to the Pink Sheets and given the “Q” ending indicating bankruptcy filed.

That “Marketwatch” article also mentions Walter:

The slump has a number of coal companies at risk. Walter Energy Inc. filed for bankruptcy protection last month with a plan to hand control of the company to senior creditors, after chapter 11 filings by Patriot Coal Corp. and Xinergy Ltd. earlier this year. Arch Coal Inc., meanwhile, is working with bankers and lawyers who specialize in helping struggling companies, The Wall Street Journal has reported, and is facing lender pushback on a proposed debt-for-debt exchange meant to reduce its borrowings and interest costs.

Alpha has posted four straight annual losses and disclosed in May that a Wyoming regulator had notified the company it no longer qualified for a “self-bonding” program that had freed the company from buying insurance to cover future mine cleanup costs. Given the financial burden, the company opted to file for bankruptcy rather than repaying a convertible bond due at the start of this month, despite having $476.3 million in cash as of March 31.

Which adds Patriot Coal and Xinergy to the list.

I note in passing that Obama was 100% in favor of a “bail out” of General Motors to preserve that union’s pensions, but I guess he doesn’t like conservative miners as much as liberals from Detroit. That, too, is part of the problem with letting government pick favorites. ALL are supposed to be treated equally under the law, but with bailouts, some are more equal than others.

Any Republican with 1/2 a brain ought to be running clips about Obama and the Democrats war on coal, and madam Hillary’s plan to continue it, throught out Coal Country and into the industrial heartland. Then just ask “Is your industry next?”

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About E.M.Smith

A technical managerial sort interested in things from Stonehenge to computer science. My present "hot buttons' are the mythology of Climate Change and ancient metrology; but things change...
This entry was posted in Economics - Trading - and Money, Political Current Events, Stock Charts and tagged , , , . Bookmark the permalink.

10 Responses to Obama’s Gift To You: ANRZ Alpha Natural Resources Bankrupt. Next?…

  1. A C Osborn says:

    All industries must be next under the Obama plan, as he wants to make energy more expensive, which impacts every “Industry” as well as every Tax Paying Worker.
    I doubt if it will affect all those on benifits though, which is where Hilary will be aiming her electioneering.

  2. omanuel says:

    We are only now awakening to the reality of Stalin’s emerging from the ruins of WWII in possession of Japan’s successful atomic bomb plant at Konan, Korea and the crew of an American B29 bomber that Stalin held for negotiations in Aug-Sept 1945 to unite nations and national academies of science into a giant, worldwide Orwellian Ministry of Consensus Science (UN)Truths on 24 Oct 1945.

    Now we may understand why George Orwell moved from London to the Scottish Isle of Jura in 1946 to start writing the futuristic novel, “Nineteen Eighty Four.”

  3. Gary says:

    Republican ought to… Yeah, but 1) they’re the stupid party, 2) they’re at least half as guilty with the big government idea.

  4. Steve C says:

    “Is that the job of Washington D.C.? To destroy wealth?”

    We used to have a word for people who worked against the interests of their country. The first syllable, I recall, sounds like “tray”, the second like “Tor”. The same applies to our lot, fearlessly prioritising EU communitarianism and AGW BS over our national interests. I remember how we used to deal with such people too. Very “Politically Incorrect” it was, but they didn’t re-offend.

  5. R. de Haan says:

    A cokes mine in Australia valued at almost a 700 Australian dollars just a few years a go was sold for the symbolic price of one dollar. They blame China for it.
    “However, there is a giant infrastructure investment boom just getting started in Asia and along the Silk Road.

    Wasn’t the whole commodity boom of the last decade based on infrastructure investment in China? Now, it will expand to all of Asia and beyond.
    It is interesting to note how little is being written in the West about One Belt, One Road (see related themes). China Development Bank notes that the number of cross-border projects underway in the Silk Road effort already amount to $980 billion. Reportedly, Asia’s infrastructure needs are close to $8 trillion by 2020”.

    And there is the Chinese mega project to dig a second Channel which is going to kill the Panama Channel if the “Less is better” mentality in the West and the “We have to kill the Middle Class to kill the consumer society to save the planet” mantra.

    Yesterday Saudi and Emirate tanks have entered Yemen.
    http://www.zerohedge.com/news/2015-08-04/dramatic-footage-saudi-tanks-invading-yemen
    This ex-cold war equipment although refurbished and updated will need replacement some day.
    The US announced new bombing raids in Syria and the Russians claimed they have prepared their Marines and paratroopers to hunt terrorists in Syria.
    In Europe, if they can find the money, a new wave of arms production is expected in order to fend off the Russians.

    So the coal market could get a boost soon.
    The world population continues to grow and infra structure roads, bridges, dams are needed.
    In the US the entire infra structure is in need of an overhaul. Thousands of steel bridges need to be replaced.

    What the future will bring is written in the stars of course but I think that if they had made the one Australian dollar offer to me I would have taken taken it.

    http://www.zerohedge.com/news/2015-08-01/commodity-collapse-comes-full-circle-coal-mine-valued-630-million-2011-just-sold-one

    In the mean time Obama has made quite a few enemies and they will fight him in court.
    http://www.zerohedge.com/news/2015-08-03/president-obama-explains-how-his-clean-power-plan-does-not-make-him-nations-greatest

  6. John Robertson says:

    More to follow Ontario Canada is leading the way, industry is moving out at an accelerating pace.
    The guild of parasitic droolers is in full control.
    What did anyone expect?
    Community organizers, career politicians, career public servants?
    Leaders of a cabal of individuals who have never produced a good of benefit to anyone.
    This is the kleptocracy, bureaucracy run mad.
    Bureaucracy is as much a servant as fire,when we elect the clueless to act as firemen why should we act surprised when the whole operation burns down?

    The sheer delusion of these self proclaimed leaders is astounding, who in their right mind believes they can manage other peoples lives better than the individual can?
    Yet these command government halfwits, believe they can direct human enterprise via inciting the mob.
    Can’t fix stupid, but will not allow stupid to ruin my tools either.
    Those who must rule us for our own good are insane.
    We will need to commence to spitting upon our hands and begin thinning the herd of parasites.

    There is no benefit for the citizen in working to support our overlords.
    Hence the explosion of welfare,disability rolls.
    Voluntary withdrawal from work force.

    Now a civilized approach might be to restrict the theft by stripping every person on the public teat of their vote.
    If you are taking from the public purse you are in conflict of interest when deciding who to rob.
    A flat tax and an individual maximum amount of tax extorted would go a long way to starve the beast.

    Of course we need do little, our governments have expanded to the point where a fire has sucked all the oxygen out of the air available.
    The cold water of bankruptcy is coming down and what is not produced can not be stolen.
    So the thieves will soon enough turn on each other.

  7. E.M.Smith says:

    @John Robertson:

    John, don’t hold back, tell us how you really feel… ;-)

    Unfortunately, I think you are absolutely correct. TPTB have decided we are all idiots and not only that, but idiots who deserve to be plucked for our own good. The hubris and arrogance rivals Aristocratic France and one can only hope the end result is not as sharp…

  8. Larry Ledwick says:

    The guild of parasitic droolers

    My I love that construct! Should we just abbreviate that as TGPD or shorten to only GPD ?

  9. omanuel says:

    TRUTH IS BEING REVEALED

    As reported today in comments on the end of WWII in Japan Times,

    http://www.japantimes.co.jp/news/2015/08/05/national/history/japan-times-reported-atomic-bombings-hiroshima-nagasaki/#.VcJm8Nm9Kc3

    In August 1945 while standing in the ruins of Hiroshima, Kuroda correctly realized, “the birth of the world may have been just like this.”

    In 1956, Kuroda predicted the natural nuclear reactor that was discovered in the Oklo uranium mine at Oklo in 1972.

    In 1960, Kuroda reported decay products from extinct Plutonium-244 in Earth’s atmosphere.

    In 1964, Marvin Rowe and Kuroda discovered decay products from extinct Plutonium-244 in the Pasamonte meteorite.

    Later, Kuroda and Myers used the decay products from Uranium-238 and Plutonium-244 in the Earth, Moon and meteorites to show our chemical elements were made in a super-nova explosion five billion years (5 Ga) ago at the birth of the solar system.

    For seventy years (1945-2015) truth about the Creator, Destroyer and Sustainer of atoms in the solar system has been hidden from the public.

  10. E.M.Smith says:

    @Larry:

    I votefor GPD since a TLA is a BFD IMHO… OMG NOT a TLA!!!

Comments are closed.