Armstrong Energy has again extended its forbearance agreement with bondholders after the company failed to make good on a missed interest payment within the 30-day grace period that expired on July 17, 2017.
The forbearance with respect to calling an event of a default will now run until 12:01 a.m. EDT on Sept. 24, 2017, according to a company statement filed with the Securities and Exchange Commission.
Approximately 78% of existing noteholders are party to the agreement.
As reported, Armstrong elected not to make an $11.75 million interest payment on the $200 million of 11.75% senior secured notes as it continues to discuss the terms of a restructuring with lenders.
Armstrong Energy had a cash position of approximately $58.8 million as of March 31, which it expects will allow it to continue to fund its ongoing operations and meet all of its current obligations to pay suppliers, employees, vendors, and others.
Armstrong Energy produces thermal coal from surface and underground mines located in the Illinois Basin coal region in western Kentucky. The company operates five mines, including three surface mines and two underground mines located in Muhlenberg and Ohio Counties, Ky. — Rachelle Kakouris
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