Coal giant seeking Chapter 11 protection
CHARLESTON, W.VA. >> A major U.S. coal mining company is seeking bankruptcy protection.
Ohio-based Murray Energy filed for Chapter 11 bankruptcy reorganization Tuesday, joining a growing list of struggling coal operations as communities switch away from fossil fuel to less-polluting renewable energy or natural gas.
Murray Energy was the country’s fourth largest coal producer in 2018, accounting for 6.1% of total production, according to the Energy Information Administration. Other major producers that have sought bankruptcy protection this year include Blackjewel Mining in West Virginia and Cloud Peak Energy in Wyoming.
Murray Energy’s move was necessary to access liquidity and best position it for long-term success, said former CEO Robert Murray. The company’s operations span Alabama, Illinois, Indiana, Kentucky, Pennsylvania, Utah and West Virginia, as well as Colombia, South America.
Government preference for gas and renewable energy to replace coal-fired power generation, combined with a recent severe reduction in coal exports, delivered a one-two punch that an over-extended Murray Energy could not withstand, said Cecil Roberts, president of United Mine Workers of America.
“Now comes the part where workers and their families pay the price for corporate decision-making and governmental actions,” Roberts said in a prepared statement. “But that does not mean we will sit idly by and let the company and the court dictate what happens to our members and our retirees. We have high-powered legal, financial and communications teams in place that will fight to protect our members’ interests in the bankruptcy court.”
West Virginia Senate President Mitch Carmichael said the bankruptcy filing was surprising even with the evident struggles in the coal business, adding that he’s concerned about pensions and worker protections for Murray Energy’s nearly 7,000 employees. U.S. Sen. Joe Manchin, a West Virginia Democrat, said on Twitter that Murray Energy must continue meeting its obligations to pay into pension plans for union miners.