When a federal judge approved Alpha Natural Resources’ bankruptcy exit plan two weeks ago, regulators, industry leaders and environmentalists breathed a collective sigh of relief, but while the plan will keep two large coal mines operating and set the stage for a stricter approach to self-bonding, the long-term outlook for Alpha is murkier, the Casper (Wyo.) Star Tribune reported today. Alpha was the first of three large coal companies operating in Wyoming to file for bankruptcy amid one of the most difficult years for coal in three decades. Arch Coal, which operates the Black Thunder Mine, and Peabody Energy, which runs the North Antelope Rochelle Mine, soon followed. But as the first company to reach a restructuring agreement with regulators and the courts, Alpha is expected to set a precedent for the other companies. Environmentalist hope Alpha’s plan will change the state’s approach to environmental bonding. State regulators want pragmatic deals that preserve Wyoming jobs. However, in a bearish market with hesitant lenders and federal oversight, widespread uncertainty remains about the viability of Alpha’s financial plan post-bankruptcy.
