Murray Kentucky Energy acquires 51% stake in Armstrong Energy
Murray Kentucky Energy ventures into a Transaction agreement with Armstrong Energy acquiring a 51% ownership interest in Armstrong Energy. The secured noteholders of Armstrong Energy will hold a forty-nine percent (49%) ownership interest in the new company.
Mr. Robert E. Murray, Chairman, President and Chief Executive Officer of Murray Energy. “After this transaction is completed, Murray Kentucky and the lenders of Armstrong Energy will jointly own five (5) mines that are strategically important in the Illinois Basin. These operations will complement our existing mines in the Illinois Basin.”
The new company will be a producer of low-chlorine, high-sulfur thermal coal, with five (5) mines in the Illinois Basin, including three (3) surface mines and two (2) operating underground mines. As of June 30, 2017, Armstrong Energy controlled over 445 million tons of proven and probable coal reserves in Western Kentucky. The new company will also own and operate the three (3) existing coal processing plants and river dock coal handling and rail loadout facilities.
Image Source: Murray Energy Corporation