Alpha Says Lenders Offer $500M for Coal Producer's Assets

Alpha Natural Resources says it has received a $500 million offer from existing lenders for the potential sale of the bankrupt coal producer’s core assets.

Bristol, Virginia-based Alpha announced the offer in a filing Monday in federal bankruptcy court in Richmond, Virginia.

The filing says the lenders have agreed to serve as the lead bidder. The offer would set the floor for an auction process that lets competitors make higher bids.

The offer includes all Alpha coal assets in Pennsylvania and Wyoming and some assets in Virginia and West Virginia Also included are natural gas holdings in Pennsylvania’s Marcellus Shale and its interest in a Newport News, Virginia coal export terminal.

Alpha filed for bankruptcy protection in August and says it hopes to emerge from bankruptcy by July.