Aug
04

Alpha Natural Resources, a Onetime Coal Giant, Files for Bankruptcy Protecton

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Coal operations owned by Alpha Natural Resources in Sylvester, W. Va.CreditLuke Sharrett for The New York Times

Alpha Natural Resources, once a powerhouse of the American coal industry, filed for Chapter 11 bankruptcy protection on Monday so it may emerge from the grip of a $3 billion debt at a time when utilities are switching to natural gasand coal prices are plummeting.

Alpha Natural Resources borrowed heavily in 2011 to buy Massey Energy for $7.1 billion, seeking, like many coal companies at the time, to acquire an empire of Appalachian coal mines in the hope that China would be a growth market for exports.

That deal turned out to be a disaster for the company when demand for both steelmaking and power-generating coal declined domestically and in several important international markets in recent years…

Alpha Natural Resources, a Onetime Coal Giant, Files for Bankruptcy Protecton

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