Coal Age Magazine - For more than 100 years, Coal Age has been the magazine that readers can trust for guidance and insight on this important industry.
Issue link: https://coal.epubxp.com/i/668539
Four months after his conviction and almost six years to the day after the explosion that launched his criminal investigation, ex- Massey Energy CEO Don Blankenship has been sentenced in feder- al court to one year in prison and a $250,000 fine. Blankenship's sentencing hearing was scheduled for 10 a.m. April 6 in Charleston, West Virginia, and reports of the verdict — which was the maximum penalty for his misdemeanor conspiracy conviction — by U.S. District Judge Irene Berger were made public by noon. The former executive is the fifth person to be convicted for his role in events leading up to the Upper Big Branch (UBB) mine explosion on April 5, 2010, that killed 29 coal miners. According to the Associated Press, Berger — a coal miner's daughter — said in the hearing that she had given the sentence great consideration and that, in the end, safety must be paramount. "Instead of being to be able to tout you as a success story, we are here as a result of your part in a dangerous conspiracy," she said. Following the sentencing, Blankenship stated that the 29 victims of UBB were "great guys, great coal miners" and again proclaimed his innocence. "It is important to everyone that you know that I'm not guilty of a crime," Blankenship said. His legal team said that they will appeal the decision; they had contended throughout the process that he should receive, at most, proba- tion and a fine. A motion for his freedom during the appeals process was reportedly denied. Blankenship was convicted December 3, 2015, with a single count of misdemeanor conspiracy to violate mine safety stan- dards at the southern West Virginia mine. He escaped potential felony charges and, more recently, $28 million in restitution to Alpha Natural Resources to cover his legal fees. n e w s Former Massey Energy CEO Sentenced to Prison Former Massey Energy CEO Don Blankenship (left) walks out of the Robert C. Byrd U.S. Courthouse in Charleston, West Virginia. (AP Photo / Chris Tilley) 4 www.coalage.com April 2016 B R E A K I N G N E W S Peabody Energy Files Chapter 11 Bankruptcy One month after warning of this potential outcome, top producer Peabody Energy confirmed April 13 it has filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Eastern District of Missouri in St. Louis. The voluntary filing includes a majority of the company's U.S. entities, but not its Australian platform; all of its global locations will continue to operate normally. What will be included in the filing is Peabody's El Segundo and Lee Ranch mining complexes in New Mexico and the Twentymile operation in Colorado; officials said the sale to Bowie Resources Partners has now been terminated. It said only that the buyer "was unable to complete the transac- tion" for the assets. Citing the industry's prolonged downturn as the impetus, Peabody offi- cials said the Chapter 11 filing will help it reduce its overall debt level, low- er fixed charges, improve the company's operating cash flow and position it for long-term success. It intends to continue operations throughout the bankruptcy process. "This was a difficult decision, but it is the right path forward for Peabody. We begin today to build a highly successful global leader for tomorrow," President and CEO Glenn Kellow said. "Through today's action, we will seek an in-court solution to Peabody's substantial debt burden amid a historically challenged industry backdrop." Peabody has obtained $800 million in debtor-in-possession (DIP) financing, an arrangement by Citigroup that includes numerous company secured lenders and unsecured noteholders. The facilities include a $500 million term loan, a $200 million bonding accommodation facility and a cash-collateralized $100 million letter of credit facility. All are subject to court approval. "In addition to the company's existing cash position, Peabody believes that it has sufficient liquidity to operate its business worldwide post-peti- tion and to continue the flow of goods and services to its customers in the ordinary course," Kellow said. The executive is also remaining positive on Peabody's future, thanks to the company's core mission. "A company like Peabody with safe, efficient operations will be well positioned to serve coal demand that will continue in the United States and around the world," he said. "We are a leading produc- er and reserve holder in our core regions of the Powder River Basin, Illinois Basin and Australia. Peabody has a new management team, outstanding workforce, unmatched asset base and strong underlying operational perfor- mance that represent a key driver in the company's future success." He pointed out that all of its domestic operations were cash-flow posi- tive last year, and its Australian locations exceeded earnings year-on-year in 2015 despite lower prices for coal. Its commitment to best practices and sustainability in land restoration will also continue. Peabody has filed first-day motions with the U.S. Bankruptcy Court to continue financial operations uninterrupted.