Alpha Natural Resources Inc. is closing in on a deal to sell a half dozen of its Appalachian mines as the U.S. coal producer negotiates a potential bankruptcy filing amid the industry’s worst downturn in decades, Bloomberg News reported yesterday. Revelation Energy LLC, run by Jeff Hoops, is negotiating a purchase of Alpha Natural’s mines in southwest Virginia and eastern Kentucky, said the person, who asked not to be named because the discussions are private. The cash value of the deal would be low, but Revelation would also assume liabilities associated with cleanup costs, the person said. Alpha is exploring ways to remain financially viable amid a prolonged coal-price slump that has already pushed rivals Walter Energy Inc. and Patriot Coal Corp. into bankruptcy proceedings this year. The Bristol, Va.-based company has been in talks with creditors to restructure its $4 billion of debt. With $109 million owed to junior-ranking bondholders on Aug. 1, the miner is discussing with senior lenders a loan that would finance operations through a bankruptcy court proceeding.
