Murray Energy Corp. said its lenders have agreed to swap $1.7 billion in loans for new loans that mature at a later date, a key element in the coal company’s plan to restructure billions in debt, WSJ Pro Bankruptcy reported. Murray said on Thursday that it had garnered support from 95 percent of its existing lenders to swap their term loans that come due in 2020 for new loans with a later maturity date. Murray Energy is also providing additional collateral to back the new loans and notes, WSJ Pro Bankruptcy previously reported. That collateral includes the equity in Murray’s South America and Kentucky Energy businesses and its indirect equity interests the company’s commodities-trading arm. Support from 95 percent of its lenders was a key threshold for Murray’s plan to restructure about $1 billion in bond debt. The Ohio-based coal-mining company had seen its earnings decline in 2017 as U.S. power companies increasingly shut down coal-fired plants and turn to cheaper natural gas.
