Alpha may be nearing deal with Revelation

Alpha Natural Resources Inc. is closing in on a deal to sell a half dozenUtility of its Appalachian mines as the U.S. coal producerPublic Service negotiates Enterprisea potential Group bankruptcy filing amid Consolidatedthe industry’sEdison worst Baltimore downturnGas and in Electricdecades, according to a person Central with Maine knowledgePower of the matter.

Revelation Energy LLC, run by Jeff Hoops, is Average negotiating a purchase of Alpha Natural’s mines in southwest Virginia and eastern Kentucky, said the person, who asked not to be named because the discussions are private. The cash value of the deal would be low, but Revelation would also assume liabilities associated with clean-up costs, the person said.

Alpha is exploring ways to remain financially viable amid a prolonged coal-price slump that has already pushed rivals Walter Energy Inc. and Patriot Coal Corp. into bankruptcy proceedings this year. The Bristol, Virginia-based company has been in talks with creditors to restructure its $4 billion of debt, four people with knowledge of the talks said.

Lenders approached Alpha to negotiate a bankruptcy plan after Wyoming, where the company has two large mines, said in May that it no longer had the financial strength to qualify for a program that mitigates costs related to environmental cleanups.