Coal supplier Murray Energy Corp. said its business has taken a severe hit from “historically bad” coal markets and the coronavirus pandemic, pushing the bankrupt company close to liquidation, WSJ Pro Bankruptcy reported. To stay afloat, the nation’s largest private coal company sought permission on Monday from the U.S. Bankruptcy Court in Columbus, Ohio, to stop paying roughly $6 million a month in retiree medical costs. Murray said in court papers that unless it can suspend those health care obligations, it “may be faced with no choice” but to liquidate, likely costing roughly 4,900 employees their jobs. Lenders including Fidelity Management & Research Co. and Bain Capital Credit LP have been financing the company since it filed for chapter 11 protection in October, positioning themselves to acquire Murray in exchange for the forgiveness of $1.2 billion in debt. The lead bid, which requires court approval, covers Murray’s thermal coal mines, its metallurgical coal operations and its stakes in coal supplier Foresight Energy LP and trading house Javelin Global Commodities Holdings LLP.
