EX-99.1 2 january2016monthlyoperatin.htm MONTHLY OPERATING REPORT FOR THE PERIOD FROM JANUARY 1, 2016 TO JANUARY 31, 2016 Exhibit


 
JONES DAY
HUNTON & WILLIAMS LLP
 
North Point
Riverfront Plaza, East Tower
 
901 Lakeside Avenue
951 East Byrd Street
 
Cleveland, Ohio 44114
Richmond, Virginia 23219
 
Telephone: (216) 586-3939
Telephone: (804) 788-8200
 
Facsimile: (216) 579-0212
Facsimile: (804) 788-8218
 
David G. Heiman (admitted pro hac vice)
Tyler P. Brown (VSB No. 28072)
 
Carl E. Black (admitted pro hac vice)
J.R. Smith (VSB No. 41913)
 
Thomas A. Wilson (admitted pro hac vice)
Henry P. (Toby) Long, III (VSB No. 75134)
 
 
Justin F. Paget (VSB No. 77949)
 
Attorneys for Debtors
 
and Debtors in Possession
 
 
 
IN THE UNITED STATES BANKRUPTCY COURT
 
FOR THE EASTERN DISTRICT OF VIRGINIA
 
RICHMOND DIVISION
 
 
 
 
 
 
 
In re:
Chapter 11
 
 
 
 
Alpha Natural Resources, Inc., et al.,
Case No. 15-33896 (KRH)
 
 
 
 
 
Debtors.
(Jointly Administered)
 
 
 
 
 
 
 
 
 
 
 
DEBTORS' MONTHLY OPERATING REPORT FOR THE
 
PERIOD FROM JANAUARY 1, 2016 THROUGH JANUARY 31, 2016 (1)
 
 
 
In accordance with Section 1746 of Title 28 of the United States Code, I declare under penalty of perjury that I have examined the following monthly operating report and the accompanying attachments and, to the best of my knowledge, these documents are true, correct and complete.
 
 
 
 
 
 
 
 
 
Authorized Person:
 
 
 
 
 
 
 /s/ Philip J. Cavatoni
 
Dated:
February 19, 2016
 
 
Philip J. Cavatoni
 
 
 
 
Executive Vice President &
 
 
 
 
Chief Financial & Strategy Officer
 
 







Case Name:
Alpha Natural Resources, Inc., et al.
 
Case Number:
15-33896 (KRH) (Jointly Administered)
 
Page 2






CASH RECEIPTS & DISBURSEMENTS
(amounts in thousands)


 
Case No.
Debtor Entity
Cash Receipts
Cash Disbursements (2)
1
15-33963 (KRH)
AMFIRE Mining Company, LLC
$

$

2
15-34032 (KRH)
Maxxum Carbon Resources, LLC


3
15-33939 (KRH)
Alpha Land and Reserves, LLC

1,306

4
15-33962 (KRH)
Esperanza Coal Co., LLC


5
15-33932 (KRH)
Dickenson-Russell Coal Company, LLC

1,375

6
15-33935 (KRH)
Dickenson-Russell Land and Reserves, LLC


7
15-34039 (KRH)
Paramont Coal Company Virginia, LLC

7,310

8
15-33960 (KRH)
Enterprise Mining Company, LLC

1,669

9
15-33970 (KRH)
Axiom Excavating and Grading Services, LLC


10
15-33904 (KRH)
Knox Creek Coal Corporation

742

11
15-33905 (KRH)
Mill Branch Coal Corporation

19

12
15-33908 (KRH)
Pigeon Creek Processing Corporation

23

13
15-33907 (KRH)
North Fork Coal Corporation

30

14
15-33910 (KRH)
Resource Land Company LLC


15
15-33903 (KRH)
Harlan Reclamation Services LLC

8

16
15-33909 (KRH)
Resource Development LLC


17
15-33929 (KRH)
Rawl Sales & Processing Co.

49

18
15-34015 (KRH)
Martin County Coal Corporation

127

19
15-33981 (KRH)
Sidney Coal Company, Inc.

1,491

20
15-33951 (KRH)
Road Fork Development Company, Inc.
8


21
15-33991 (KRH)
Sycamore Fuels, Inc.


22
15-33987 (KRH)
Long Fork Coal Company

22

23
15-34034 (KRH)
New Ridge Mining Company

259

24
15-34047 (KRH)
Pilgrim Mining Company, Inc.

44

25
15-34028 (KRH)
Crystal Fuels Company


26
15-33953 (KRH)
Lauren Land Company

2,348

27
15-34046 (KRH)
Peter Cave Mining Company

5

28
15-33975 (KRH)
Freeport Resources Company, LLC


29
15-34030 (KRH)
Cumberland Coal Resources, LP

17,914

30
15-33925 (KRH)
Alpha Coal Resources Company, LLC

21

31
15-34042 (KRH)
Pennsylvania Land Holdings Company, LLC

39

32
15-34043 (KRH)
Pennsylvania Land Resources Holding Company, LLC


33
15-34020 (KRH)
Pennsylvania Land Resources, LLC
346

2,259

34
15-33956 (KRH)
Emerald Coal Resources, LP

719

35
15-33964 (KRH)
Rostraver Energy Company


36
15-34044 (KRH)
Pennsylvania Services Corporation

151

37
15-33968 (KRH)
Foundation PA Coal Company, LLC


38
15-33973 (KRH)
Freeport Mining, LLC


39
15-33965 (KRH)
Foundation Mining, LLC

79


Case Name:
Alpha Natural Resources, Inc., et al.
 
Case Number:
15-33896 (KRH) (Jointly Administered)
 
Page 3






CASH RECEIPTS & DISBURSEMENTS
(amounts in thousands)


 
Case No.
Debtor Entity
Cash Receipts
Cash Disbursements (2)
40
15-33955 (KRH)
Alpha PA Coal Terminal, LLC

137

41
15-33936 (KRH)
River Processing Corporation


42
15-33961 (KRH)
Rockspring Development, Inc.

339

43
15-33946 (KRH)
Riverton Coal Production Inc.


44
15-34049 (KRH)
Pioneer Fuel Corporation

1,443

45
15-34040 (KRH)
Paynter Branch Mining, Inc.

15

46
15-33924 (KRH)
Kingston Mining, Inc.

3,096

47
15-33906 (KRH)
Neweagle Industries, Inc.


48
15-33986 (KRH)
Barbara Holdings Inc.


49
15-33967 (KRH)
Rum Creek Coal Sales, Inc.

216

50
15-33966 (KRH)
Aracoma Coal Company, Inc.

1,795

51
15-33978 (KRH)
Bandmill Coal Corporation

763

52
15-33996 (KRH)
Highland Mining Company

2,075

53
15-33919 (KRH)
Delbarton Mining Company

1,530

54
15-33982 (KRH)
Logan County Mine Services, Inc.

23

55
15-33990 (KRH)
Barnabus Land Company


56
15-34016 (KRH)
Brooks Run Mining Company, LLC

4,863

57
15-34033 (KRH)
McDowell-Wyoming Coal Company, LLC


58
15-33992 (KRH)
Herndon Processing Company, LLC

13

59
15-33976 (KRH)
Litwar Processing Company, LLC

487

60
15-34013 (KRH)
Kepler Processing Company, LLC

805

61
15-33943 (KRH)
Riverside Energy Company, LLC

530

62
15-33988 (KRH)
Stirrat Coal Company

6

63
15-33920 (KRH)
Premium Energy, LLC

1,702

64
15-34022 (KRH)
Brooks Run South Mining, LLC

2,931

65
15-34036 (KRH)
Nicewonder Contracting, Inc.


66
15-34011 (KRH)
Twin Star Mining, Inc.

114

67
15-33895 (KRH)
Buchanan Energy Company, LLC

4

68
15-33941 (KRH)
Kingwood Mining Company, LLC

33

69
15-34041 (KRH)
Peerless Eagle Coal Co.

33

70
15-34005 (KRH)
Jacks Branch Coal Company

154

71
15-33933 (KRH)
Republic Energy, Inc.

4,516

72
15-34021 (KRH)
White Buck Coal Company

8

73
15-33985 (KRH)
Green Valley Coal Company

27

74
15-33914 (KRH)
Power Mountain Coal Company

261

75
15-34010 (KRH)
Kanawha Energy Company

20

76
15-33984 (KRH)
Spartan Mining Company

3,611

77
15-33911 (KRH)
Alex Energy, Inc.

1,932

78
15-33948 (KRH)
Elk Run Coal Company, Inc.

3,508


Case Name:
Alpha Natural Resources, Inc., et al.
 
Case Number:
15-33896 (KRH) (Jointly Administered)
 
Page 4






CASH RECEIPTS & DISBURSEMENTS
(amounts in thousands)


 
Case No.
Debtor Entity
Cash Receipts
Cash Disbursements (2)
79
15-34009 (KRH)
Marfork Coal Company, Inc.

5,704

80
15-34045 (KRH)
Performance Coal Company

84

81
15-33979 (KRH)
Goals Coal Company

51

82
15-34008 (KRH)
Black King Mine Development Co.

888

83
15-34026 (KRH)
Clear Fork Coal Company

3

84
15-34038 (KRH)
Omar Mining Company

32

85
15-34002 (KRH)
Independence Coal Company, Inc.

625

86
15-34004 (KRH)
Black Castle Mining Company, Inc.

2,805

87
15-33969 (KRH)
Laxare, Inc.

110

88
15-34012 (KRH)
Boone East Development Co.

1,562

89
15-33949 (KRH)
Alpha Wyoming Land Company, LLC

80

90
15-34007 (KRH)
Jay Creek Holding, LLC


91
15-33923 (KRH)
Delta Mine Holding Company


92
15-34014 (KRH)
Wabash Mine Holding Company

154

93
15-33944 (KRH)
Alpha Midwest Holding Company


94
15-34017 (KRH)
Warrick Holding Company


95
15-33971 (KRH)
Foundation Royalty Company

6

96
15-33926 (KRH)
Alpha Coal Sales Co., LLC

12,707

97
15-33901 (KRH)
Appalachia Holding Company

1,384

98
15-33972 (KRH)
Russell Fork Coal Company


99
15-33896 (KRH)
Alpha Natural Resources, Inc.
52

10

100
15-33921 (KRH)
Alpha Appalachia Services, Inc.

9

101
15-33902 (KRH)
Black Mountain Cumberland Resources, Inc.


102
15-33900 (KRH)
Appalachia Coal Sales Company, Inc.


103
15-33974 (KRH)
Shannon-Pocahontas Coal Corporation


104
15-34025 (KRH)
Wyomac Coal Company, Inc.


105
15-34000 (KRH)
Big Bear Mining Company

38

106
15-33999 (KRH)
Hopkins Creek Coal Company


107
15-33995 (KRH)
T. C. H. Coal Co.


108
15-34006 (KRH)
Trace Creek Coal Company

7

109
15-33912 (KRH)
Dehue Coal Company


110
15-33947 (KRH)
Alpha Natural Resources, LLC
195,129

1,336

111
15-33954 (KRH)
AMFIRE, LLC


112
15-33938 (KRH)
DRIH Corporation


113
15-33958 (KRH)
AMFIRE Holdings, LLC


114
15-34023 (KRH)
Williams Mountain Coal Company


115
15-34001 (KRH)
Thunder Mining Company II, Inc.


116
15-33917 (KRH)
Alpha Appalachia Holdings, Inc.


117
15-33952 (KRH)
Alpha Natural Resources Services, LLC

71,848


Case Name:
Alpha Natural Resources, Inc., et al.
 
Case Number:
15-33896 (KRH) (Jointly Administered)
 
Page 5






CASH RECEIPTS & DISBURSEMENTS
(amounts in thousands)


 
Case No.
Debtor Entity
Cash Receipts
Cash Disbursements (2)
118
15-34029 (KRH)
Maxxim Shared Services, LLC

9,692

119
15-33913 (KRH)
Alpha American Coal Company, LLC


120
15-33915 (KRH)
Alpha American Coal Holding, LLC


121
15-33950 (KRH)
Alpha Natural Resources International, LLC


122
15-33937 (KRH)
Alpha India, LLC

6

123
15-33898 (KRH)
Alpha European Sales, Inc.


124
15-33977 (KRH)
Shannon-Pocahontas Mining Company


125
15-33994 (KRH)
Lynn Branch Coal Company, Inc.


126
15-33942 (KRH)
Duchess Coal Company


127
15-34019 (KRH)
West Kentucky Energy Company


128
15-33989 (KRH)
Greyeagle Coal Company

5

129
15-33957 (KRH)
Robinson-Phillips Coal Company


130
15-33945 (KRH)
Eagle Energy, Inc.

20

131
15-33983 (KRH)
Bandytown Coal Company


132
15-33993 (KRH)
Belfry Coal Corporation


133
15-34050 (KRH)
Plateau Mining Corporation

21

134
15-34024 (KRH)
Castle Gate Holding Company


135
15-34003 (KRH)
Maple Meadow Mining Company


136
15-33997 (KRH)
Tennessee Consolidated Coal Company

31

137
15-34027 (KRH)
Maxxim Rebuild Co., LLC

819

138
15-33928 (KRH)
DFDSTE Corp.


139
15-34035 (KRH)
New River Energy Corporation

103

140
15-34018 (KRH)
Coal Gas Recovery II, LLC
112

248

141
15-33940 (KRH)
Alpha Terminal Company, LLC


142
15-33959 (KRH)
Alpha Shipping and Chartering, LLC


143
15-33931 (KRH)
Alpha Coal West, Inc.

15,364

144
15-33916 (KRH)
Alpha Sub Eight, LLC


145
15-33918 (KRH)
Alpha Sub Eleven, Inc.


146
15-33922 (KRH)
Alpha Sub Nine, LLC


147
15-33927 (KRH)
Alpha Sub One, LLC


148
15-33930 (KRH)
Alpha Sub Ten, Inc.


149
15-33934 (KRH)
Alpha Sub Two, LLC


 
 
 
 
 
 
Total Debtors (3) 
$
195,647

$
200,751



Case Name:
Alpha Natural Resources, Inc., et al.
 
Case Number:
15-33896 (KRH) (Jointly Administered)
 
Page 6






BANK ACCOUNT INFORMATION
(amounts in thousands)







 
Account Holder
Bank Name
Account Description
Last Digits of
Account Number
Ending
Bank Balance (4)
1
Alpha Natural Resources, LLC
Bank of America, N.A.
Main Concentration Account
8595
$
142,224

2
Alpha Natural Resources, LLC
Branch Banking and Trust Company
Concentration Account
0601
$
47

3
Alpha Natural Resources, Inc.
Citicorp North America, Inc.
Segregated Concentration Account
8377
$
324,940

4
Alpha Natural Resources, LLC
Bank of America, N.A.
Segregated Account
8084
$
230

5
Alpha Natural Resources, LLC
Bank of America, N.A.
ZBA Lockbox Account
8603
$

6
Alpha Natural Resources, Inc.
Bank of America, N.A.
ZBA Lockbox Account
3314
$

7
Alpha Natural Resources, Inc.
Bank of America, N.A.
ZBA Lockbox Account
8967
$

8
Alpha Natural Resources Services, LLC
Bank of America, N.A.
ZBA Payroll Account
7851
$

9
Bandmill Coal Corporation
Bank of America, N.A.
ZBA Payroll Account
0891
$

10
Cumberland Coal Resources, LP
Bank of America, N.A.
ZBA Payroll Account
7899
$

11
Dickenson-Russell Coal Company, LLC
Bank of America, N.A.
ZBA Payroll Account
7912
$

12
Emerald Coal Resources, LP
Bank of America, N.A.
ZBA Payroll Account
7931
$

13
Goals Coal Company
Bank of America, N.A.
ZBA Payroll Account
0896
$

14
Litwar Processing Company, LLC
Bank of America, N.A.
ZBA Payroll Account
7979
$

15
Power Mountain Coal Company
Bank of America, N.A.
ZBA Payroll Account
0919
$

16
Alpha Natural Resources Services, LLC
Bank of America, N.A.
ZBA Master Disbursement Account
9502
$

17
Maxxim Rebuild Co., LLC
Branch Banking and Trust Company
Maxxim Operating Account
2706
$
312

18
Foundation PA Coal Company, LLC
Bank of America, N.A.
Rice Proceeds Account
7254
$
39,386

19
Alpha Natural Resources Services, LLC
Bank of America, N.A.
Operating Account
9311
$
31,814

20
Alpha Natural Resources Services, LLC
Bank of America, N.A.
Operating Account
9316
$
20,244

21
Alpha India, LLC
Bank of America, N.A.
Operating Account
5585
$

22
New River Energy Corporation
First Community Bank
Operating Account
6945
$
52

23
Pennsylvania Land Resources, LLC
Wells Fargo
Operating Account
7130
$
4,132

24
Coal Gas Recovery II, LLC
Wells Fargo
Operating Account
7155
$
166

25
Alpha European Sales, Inc.
UBS Bank
Foreign Account
1501T
$
1

26
Alpha European Sales, Inc.
UBS Bank
Foreign Account
1560W
$

27
Alpha European Sales, Inc.
UBS Bank
Foreign Account
1561Q
$

28
Alpha Appalachia Services, Inc.
Branch Banking and Trust Company
Petty Cash Account
3914
$
8

29
Alpha Appalachia Services, Inc.
Branch Banking and Trust Company
Petty Cash Account
3949
$
10

30
Alpha Appalachia Services, Inc.
United Bank
Petty Cash Account
1965
$
4

31
Alpha Coal West, Inc.
First National Bank
Petty Cash Account
1657
$
11

32
Alpha Natural Resources Services, LLC
Bank of America, N.A.
Payroll Petty Cash Account
5234
$
66

33
Logan County Mine Services, Inc.
Branch Banking and Trust Company
Petty Cash Account
3930
$
10

34
Brooks Run Mining Company, LLC
JP Morgan Chase
Petty Cash Account
3496
$
6

35
Brooks Run Mining Company, LLC
First Community
Petty Cash Account
2576
$
10

36
Marfork Coal Company, Inc.
Branch Banking and Trust Company
Petty Cash Account
3957
$
15

37
Cumberland Coal Resources, LP
First Federal
Petty Cash Account
3816
$
5

38
Lauren Land Company
Branch Banking and Trust Company
Petty Cash Account
3841
$
11


Case Name:
Alpha Natural Resources, Inc., et al.
 
Case Number:
15-33896 (KRH) (Jointly Administered)
 
Page 7






BANK ACCOUNT INFORMATION
(amounts in thousands)







 
Account Holder
Bank Name
Account Description
Last Digits of
Account Number
Ending
Bank Balance (4)
39
Alpha Appalachia Services, Inc.
Branch Banking and Trust Company
Petty Cash Account
3922
$
15

40
Kingston Mining, Inc.
Branch Banking and Trust Company
Petty Cash Account
1972
$
2

41
Kingwood Mining Company, LLC
ClearMountain Bank
Petty Cash Account
7670
$
1

42
Maxxim Shared Services, LLC
Branch Banking and Trust Company
Petty Cash Account
6712
$
3

43
Alpha Natural Resources Services, LLC
Global Cash Card
Payroll Petty Cash Account
6652
$
129

44
Alpha Natural Resources, Inc.
Citicorp North America, Inc.
Other Account (letters of credit collateral)
5456
$
563

45
Alpha Natural Resources, Inc. (5)
Citicorp North America, Inc.
Other Account (letters of credit collateral)
5432
$
15,305

46
Alpha Natural Resources, Inc. (5)
Citicorp North America, Inc.
Other Account (letters of credit collateral)
5459
$
135,826

47
Alpha Natural Resources, Inc.
United Bank, Inc.
Other Account (letters of credit collateral)
1542
$
5,235

48
Alpha Natural Resources, Inc.
Bank of America, N.A.
Money Market Account (inactive)
0A10
$

49
Alpha Natural Resources, Inc.
Bank of America, N.A.
Investment Account (inactive)
8906
$

50
Foundation PA Coal Company, LLC
Barclays
Corporate Equity Securities (Rice Shares)
N/A
$
46,868

51
Alpha Natural Resources, Inc.
Bank of America, N.A.
Rabbi Trust
0388
$
34

52
Alpha Natural Resources, Inc.
Bank of America, N.A.
Rabbi Trust
0379
$
399

53
Alpha Natural Resources, Inc.
Bank of America, N.A.
Rabbi Trust
0387
$
7,397

54
Alpha Appalachia Holdings Company
Bank of America, N.A.
Rabbi Trust
0378
$
679

55
Alpha Natural Resources, LLC
Wells Fargo
Managed Securities Account - BAML
2600
$
130,449

56
Alpha Natural Resources, LLC
Wells Fargo
Managed Securities Account - Morgan Stanley
2602
$
75,145

57
Alpha Natural Resources, LLC
Wells Fargo
Managed Securities Account - Deutsche
2605
$
75,416

58
Alpha Natural Resources, LLC
Wells Fargo
Managed Securities Account - PNC
2606
$
95,163

59
Alpha Natural Resources, LLC
Wells Fargo
Managed Securities Account - Sterling
2607
$
75,266




Case Name:
Alpha Natural Resources, Inc., et al.
 
Case Number:
15-33896 (KRH) (Jointly Administered)
 
Page 8


PAYMENTS TO INSIDERS (6)
(amounts in thousands)
 
 
 
 
 
Name
Title / Capacity
Type of Payment
Amount Paid in Current Period
Total Paid
to Date Postpetition
E. Linn Draper, Jr.
Director
Quarterly Director Fees & Expense Reimbursement
$

$
43

William J. Crowley, Jr.
Director
Quarterly Director Fees & Expense Reimbursement

26

Deborah M. Fretz
Director
Quarterly Director Fees & Expense Reimbursement

34

L. Patrick Hassey
Director
Quarterly Director Fees & Expense Reimbursement

35

P. Michael Giftos
Director
Quarterly Director Fees & Expense Reimbursement

34

Joel Richards, III
Director
Quarterly Director Fees & Expense Reimbursement

64

Various Employees
Various
Wages & Other Payroll Earnings, Allowances and Considerations
502

3,394

Various Employees
Various
Expense Reimbursements
10

74

 
 
 
 
 
Total Payments To Insiders
$
512

$
3,704




Case Name:
Alpha Natural Resources, Inc., et al.
 
Case Number:
15-33896 (KRH) (Jointly Administered)
 
Page 9


PAYMENTS TO PROFESSIONALS
(amounts in thousands)
 
 
 
 
 
Name
Role / Capacity
Amount Paid in Current Period
Total Paid
to Date Postpetition
Total Accrued & Unpaid (7)
Jones Day
Debtors' Counsel
$

$
4,823

$
3,139

Hunton & Williams LLP
Debtors' Local Counsel
66

360

325

Jackson Kelly PLLC
Debtors' Special Counsel
118

678

1,181

Quinn Emanuel Urquhart & Sullivan, LLP
Debtors' Special Counsel
2

65

19

Cleary Gottlieb Steen & Hamilton LLP
Debtors' Special Counsel
44

303

347

Rothschild Inc.
Debtors' Investment Banker
199

2,126

825

Alvarez & Marsal North America, LLC
Debtors' Financial Advisor
446

2,740

1,445

McKinsey Recovery & Transformation Services, US, LLC
Debtors' Turnaround Advisor
1,842

5,889

4,457

Kurtzman Carson Consultants, LLC
Debtors' Notice, Claims, and Solicitation Agent
145

1,229

676

Davis Polk & Wardwell LLP
First Lien Lender Counsel
395

4,051

900

McGuire Woods LLP
First Lien Lender Local Counsel
53

360

48

Ducera Partners LLC
First Lien Lender Investment Bankers
181

726

371

Kirkland & Ellis LLP
Second Lien Lender Counsel
141

1,151

192

Kutak Rock LLP
Second Lien Lender Local Counsel

134

36

Houlihan Lokey, Inc.
Second Lien Lender Investment Bankers
172

966

304

Milbank Tweed Hadley & McCloy LLP
UCC's Counsel
536

3,076

1,967

Sands Anderson PC
UCC's Local Counsel
88

344

240

Jefferies Group LLC
UCC's Investment Banker
141

272

396

Protiviti Inc.
UCC's Financial Advisor
264

1,206

1,241

Blackacre LLC
UCC's Coal Consultant
23

81

95

Prime Clerk, LLC
UCC's Information Agent


2

KPMG LLP
Debtors' Auditor
173

672

497

Deloitte Tax LLP
Debtors’ Tax Advisor
206

206

403

Ernst & Young LLP
Debtors’ Accounting/Tax/Valuation Advisor

33

580

Office of the United States' Trustee
Trustee
751

1,254

250

Innovative Compensation and Benefits Concepts
UCC's Compensation Consultant


5

Stroock & Stroock & Lavan LLP
Counsel


162

 
 
 
 
 
Total Payments To Professionals (8)
$
5,986

$
32,745

$
20,103


Case Name:
Alpha Natural Resources, Inc., et al.
 
Case Number:
15-33896 (KRH) (Jointly Administered)
 
Page 10


POSTPETITION STATUS OF SECURED NOTES, LEASES PAYABLE
AND ADEQUATE PROTECTION PAYMENTS (9)
(amounts in thousands)
 
 
 
 
 
Principal
Beginning Balance
Advances
Repayments
Ending Balance (10)
DIP Term Loan
$
300,000

$

$

$
300,000

1st Lien Revolver
445,000



445,000

1st Lien Term Loan
610,938



610,938

Aircraft Adequate Protection (11), (12)
5,209


(57
)
5,152

 
 
 
 
 
Total
$
1,361,147

$

$
(57
)
$
1,361,090


Accrued Interest/Fees
Beginning Balance
Interest and Fees Incurred
Payments
Ending Balance
DIP Term Loan
$
9,272

$
2,617

$
(801
)
$
11,088

1st Lien Revolver
2,057

3,019

(2,010
)
3,066

1st Lien Term Loan

1,841


1,841

 
 
 
 
 
Total
$
11,329

$
7,477

$
(2,811
)
$
15,995






Case Name:
Alpha Natural Resources, Inc., et al.
 
Case Number:
15-33896 (KRH) (Jointly Administered)
 
Page 11


DEBTOR QUESTIONNAIRE
(amounts in thousands)
 
 
 
 
 
Yes
No
Have any assets been sold or transferred outside the normal course of business this reporting period?
 
X
Have any funds been disbursed from any account other than a debtor in possession account?
 
X
Are any postpetition receivables (accounts, notes, or loans) due from related parties?
X (13)
 
Have any payments been made on pre-petition liabilities this reporting period?
X (14)
 
Have any postpetition loans been received by the Debtor from any party?
 
X
Are any postpetition payroll taxes past due?
 
X
Are any postpetition State or Federal income taxes past due?
 
X
Are any postpetition real estate taxes past due?
 
X
Are any other postpetition taxes past due?
 
X
Are any amounts owed to postpetition creditors delinquent?
X (15)
 
Have any pre-petition taxes been paid during this reporting period?
X (14) (16)
 
Are any wage payments past due?
 
X
Are workers compensation, general liability or other necessary insurance coverages in effect?
X (17)
 
Are all premium payments paid current?
X (17)
 
 
 
 
Please itemize policies below
X (17)
 


Insurance Installment Payments
Type of Policy
Carrier
Period
Covered
Payment Amount & Frequency (18)




Case Name:
Alpha Natural Resources, Inc., et al.
 
Case Number:
15-33896 (KRH) (Jointly Administered)
 
Page 12


Appendix A


(Remainder of Page Intentionally Blank)



Case Name:
Alpha Natural Resources, Inc., et al.
 
Case Number:
15-33896 (KRH) (Jointly Administered)
 
Page 13


CONDENSED CONSOLIDATED BALANCE SHEET (UNAUDITED) (19)
(amounts in thousands)
 
January 31, 2016 (12)
Assets
 
Current assets
 
Cash and cash equivalents
$
661,723

Trade accounts receivable, net
155,712

Inventories, net
177,884

Short-term investments
401,404

Prepaid expenses and other current assets
100,210

Total current assets
1,496,933

 
 
Property, plant and equipment, net
2,915,665

Other acquired intangibles, net
17,390

Restricted cash
156,929

Other non-current assets
106,391

Total assets
$
4,693,308

 
 
Liabilities and Stockholders' Equity (Deficit)
 
 
 
Liabilities not subject to compromise
 
Current liabilities
 
Current portion of long-term debt
$
1,320,688

Trade accounts payable
102,729

Accrued expenses and other current liabilities
428,239

Total current liabilities
1,851,656

 
 
Long-term debt
25,221

Asset retirement obligations
485,076

Deferred income taxes
13,409

Other non-current liabilities
357,587

Total liabilities not subject to compromise
2,732,949

Liabilities subject to compromise
4,755,029

Total liabilities
7,487,978

 
 
Stockholders' Equity (Deficit)
 
Preferred stock - par value $0.01

Common stock - par value $0.01
2,351

Additional paid-in capital
8,217,925

Accumulated other comprehensive loss
(216,192
)
Treasury stock, at cost
(273,620
)
Accumulated deficit
(10,525,134
)
Total stockholders' equity (deficit)
(2,794,670
)
Total liabilities and stockholders' equity (deficit)
$
4,693,308


Case Name:
Alpha Natural Resources, Inc., et al.
 
Case Number:
15-33896 (KRH) (Jointly Administered)
 
Page 14


CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
FOR THE MONTH AND YEAR ENDED JANUARY 31, 2016 (19)
(amounts in thousands)
 
MTD & YTD
Revenues
 
   Coal revenues
$
143,845

   Freight and handling revenues
17,699

   Other revenues
2,639

   Total revenues
164,183

 
 
Costs and expenses
 
   Cost of coal sales (exclusive of items shown separately below)
176,921

   Freight and handling costs
17,699

   Other expenses
2,199

   Depreciation, depletion and amortization
17,970

   Amortization of acquired intangibles, net
(398
)
Selling, general and administrative expenses (exclusive of depreciation, depletion and amortization shown separately above)
7,900

   Asset impairment and restructuring
1,404

   Total costs and expenses
223,695

 
 
Loss from operations
(59,512
)
 
 
Other income (expense)
 
   Interest expense
(12,077
)
   Interest income
158

   Miscellaneous income, net
7

   Total other income, net
(11,912
)
 
 
Loss before reorganization items and income taxes
(71,424
)
 
 
   Reorganization items, net
(6,949
)
 
 
Loss before income taxes
(78,373
)
 
 
   Income tax benefit

 
 
 Net loss
$
(78,373
)


Case Name:
Alpha Natural Resources, Inc., et al.
 
Case Number:
15-33896 (KRH) (Jointly Administered)
 
Page 15


SUMMARIZED AND CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE MONTH AND YEAR ENDED JANUARY 31, 2016 (19)
(amounts in thousands)
 
MTD & YTD
 
 
Net cash provided by operating activities
$
11,999

 
 
Investing activities:
 
Capital expenditures
(15,616
)
Purchases of investments
(42,743
)
Sales of investments
60,204

Deposit of restricted cash
(77,864
)
Receipts from deposit of restricted cash
68,364

Proceeds from sale of property, plant and equipment
448

Net cash used in investing activities
(7,207
)
 
 
Financing activities:
 
Principal repayments of capital lease obligations
(1,136
)
Other, net
(57
)
Net cash used in financing activities
(1,193
)
 
 
Net increase in cash and cash equivalents
3,599

Cash and cash equivalents at beginning of period
658,124

Cash and cash equivalents at end of period
$
661,723




Case Name:
Alpha Natural Resources, Inc., et al.
 
Case Number:
15-33896 (KRH) (Jointly Administered)
 
Page 16


ACCOUNTS RECEIVABLE AGING (19)
(amounts in thousands)
 
 
Accounts Receivable
Amount
0-30 Days
$
148,319

31-60 Days
363

61-90 Days
659

91+ Days
13,000

Other Non-Trade & Misc. Receivables
2,418

Accounts Receivable (Gross)
$
164,759

Reserve for Bad Debt
(9,047
)
Amount Considered Uncollectible

Accounts Receivable (Net) (20)
$
155,712





AGING OF POSTPETITION TAXES & PAYABLES (19)
(amounts in thousands)
 
 
 
 
 
 
Taxes Payable
0-30 Days
31-60 Days
61-90 Days
91+ Days
Total
Federal
$
5,365

$

$

$

$
5,365

State and Local
36,072




36,072

Other





Total Taxes Payable (21)
$
41,437

$

$

$

$
41,437

 
 
 
 
 
 
Accounts Payable (22)
$
38,830

$
503

$
588

$
496

$
40,417

 
 
 
 
 
 
Total
$
80,267

$
503

$
588

$
496

$
81,854




Case Name:
Alpha Natural Resources, Inc., et al.
 
Case Number:
15-33896 (KRH) (Jointly Administered)
 
Page 17


STATUS OF POSTPETITION TAXES (19)
(amounts in thousands)
 
 
 
 
 
Federal
Beginning
Tax
Amount Withheld and/or Accrued
Amount
Paid (Received)
Ending
Tax
Withholding
$
6

$
5,327

$
(5,338
)
$
(5
)
FICA-Employee
1,032

3,084

(2,959
)
$
1,157

FICA-Employer
992

3,090

(2,959
)
$
1,123

Unemployment
153

123

(11
)
$
265

Excise
1,325

2,814

(2,481
)
$
1,658

Income



$

Other (Office of Surface Mining)
3,476

1,182

(3,491
)
$
1,167

Total Federal Taxes
$
6,984

$
15,620

$
(17,239
)
$
5,365

 
 
 
 
 
State and Local
 
 
 
 
Withholding
$
666

$
1,744

$
(1,868
)
$
542

Sales / Use
181

285

(328
)
$
138

Mineral Severance
3,979

4,636

(4,752
)
$
3,863

Unemployment
826

985

(36
)
$
1,775

Real Property
7,662

9,347


$
17,009

Personal Property
316

2,030

(1
)
$
2,345

Income/Franchise
159

83

(6
)
$
236

Explosive Tax
39

8

(35
)
$
12

Other Tax Payable
(3
)
3


$

Sales Tax Collected
4

3


$
7

Other (Production Taxes)
8,418

2,622

(895
)
$
10,145

Total State and Local
$
22,247

$
21,746

$
(7,921
)
$
36,072

 
 
 
 
 
Total Taxes (21)
$
29,231

$
37,366

$
(25,160
)
$
41,437



Case Name:
Alpha Natural Resources, Inc., et al.
 
Case Number:
15-33896 (KRH) (Jointly Administered)
 
Page 18


NOTES

(1)
On August 3, 2015 (the "Petition Date"), Alpha Natural Resources, Inc. and certain of its direct and indirect subsidiaries, as debtors and debtors in possession (collectively, the "Debtors") commenced their chapter 11 cases by filing voluntary petitions for relief under chapter 11 of title 11 of the United States Code (the "Bankruptcy Code") in the United States Bankruptcy Court for the Eastern District of Virginia, Richmond Division (the "Bankruptcy Court").

This Monthly Operating Report and the condensed consolidated financial statements included herein have been prepared solely for the purpose of complying with the monthly reporting requirements for the Bankruptcy Court and the lenders under the Debtors' postpetition financing facility, as amended (the "DIP Facility"), and are in a format that the Debtors believe is acceptable to the Office of the United States Trustee for Region Four (the "U.S. Trustee"). The Monthly Operating Report is limited in scope and covers a limited time period. The schedules contained herein were not audited or reviewed by independent accountants nor are they intended to reconcile to any financial statements otherwise prepared or distributed by the Debtors or any of the Debtors' affiliates. Furthermore, because the Debtors generally produce their financial reporting on a consolidated basis, it is possible that not all assets, liabilities, cash receipts and disbursements have been recorded at the correct legal entity of either the Debtors or non-Debtor affiliates.

In addition, the assets, liabilities and results of operations of several non‑Debtor affiliates of the Debtors (Alpha Coal India Private Limited, Alpha Coal Sales International Limited, ANR Second Receivables Funding, LLC and Gray Hawk Insurance Company) are included in the Debtors' condensed consolidated financial statements. The Debtors reserve all rights to supplement or amend any schedules contained in this Monthly Operating Report.

The information presented herein is unaudited and subject to further review and potential adjustments, and may not have been subject to all procedures that would typically be applied to financial information presented in accordance with Generally Accepted Accounting Principles in the United States of America ("US GAAP"), including, but not limited to, accruals, tax provision, asset impairment testing and other recurring adjustments considered necessary by management to fairly state the financial position and results of operations for the interim period(s) presented. Furthermore, this Monthly Operating Report does not contain all disclosures that would be required for presentation in accordance with US GAAP, and there can be no assurance that, from the perspective of an investor or potential investor, the Monthly Operating Report is complete. As part of their restructuring efforts, the Debtors are reviewing their assets and liabilities on an ongoing basis, including without limitation with respect to intercompany claims and obligations, and nothing contained in this Monthly Operating Report shall constitute a waiver of any of the Debtors' rights with respect to such assets, liabilities, claims and obligations.

Certain prepetition liabilities have been reclassified as liabilities subject to compromise. Liabilities subject to compromise may include estimated or liquidated amounts for certain obligations arising prior to the Petition Date, including, among others, (a) debt-related obligations, (b) employee or retiree benefit-related obligations, (c) contractual obligations and (d) litigation and other contingent claims. The Debtors continue to analyze and reconcile these amounts, and, therefore, the amounts reflected herein are current estimates and subject to change as additional analysis is completed and decisions made.

The Debtors caution readers not to place undue reliance upon the information contained in this Monthly Operating Report. The results herein are not necessarily indicative of results which may be expected from any other period or for the full year and may not necessarily reflect the combined results and financial position of the Debtors in the future.

(2)
The Debtors are authorized to continue using their centralized cash management system pursuant to the Final Order, Pursuant to Sections 345, 363(c)(1), 503(b)(1) and 553 of the Bankruptcy Code and Bankruptcy Rules 6003(b) and 6004(h): (A) Approving the Continued Use of the Debtors' Cash Management System, Bank Accounts and Business Forms; (B) Granting a Waiver of the Requirements of Section 345(b) and Certain of the U.S. Trustee's Operating Guidelines; (C) Permitting Continued Intercompany Transactions; (D) Preserving and Permitting the Exercise of Intercompany Setoff Rights; and (E) Authorizing Banks to Honor Certain Transfers and Charge Certain Fees and Other Amounts (Docket No. 683) (the "Cash Management Order"). Disbursement

Case Name:
Alpha Natural Resources, Inc., et al.
 
Case Number:
15-33896 (KRH) (Jointly Administered)
 
Page 19


activity is reported on behalf of the Debtor entity that incurred the corresponding obligation.

(3)
Represents receipts and disbursements (excluding certain intercompany cash management activity by and among accounts of the Debtors and their non-Debtor affiliates) on a book basis for the period from January 1, 2016 through January 31, 2016. For presentation purposes, all activity associated with non-Debtor ANR Second Receivables Funding, LLC has been shown on a net basis. Receipts and disbursements exclude the Debtors' investing activities (e.g., purchases and sales of securities and investment income).

(4)
Represents ending bank balance as of January 31, 2016. As part of the Debtors' monthly close process, all bank accounts, which the Debtors are authorized to maintain pursuant to the Cash Management Order, are reconciled to the applicable bank statements. The bank accounts include cash accounts, managed security accounts, restricted cash and securities accounts, which are reflected on the balance sheet as cash and cash equivalents, short-term investments, long-term investments, and long-term restricted cash.

(5)
Ending balance includes amounts held in an overnight sweep account.

(6)
The Debtors have included net employee compensation and expense reimbursement amounts for this schedule.  For purposes of this Monthly Operating Report, the Debtors have defined "insiders" as: (a) Kevin S. Crutchfield; (b) Gary W. Banbury; (c) Philip J. Cavatoni; (d) V. Keith Hainer; (e) Alan W. Jones Jr.; (f) Mark M. Manno; (g) Brian D. Sullivan; (h) Richard H. Verheij; (i) Bruce A. Hartshorn; (j) the members of each of the boards of directors or boards of managers of the Debtors and their non-Debtor affiliates, as applicable; (k) any individuals holding the title of (i) president or (ii) general manager of any of the Debtors or their non-Debtor affiliates; and (l) all relatives of the foregoing parties who have been disclosed pursuant to Section 16 of the Securities Exchange Act of 1934 (the "Section 16 Relatives"). The Debtors do not maintain records of family relationships other than with respect to the Section 16 Relatives.
 
The parties identified as "insiders" have been included for informational purposes only. The inclusion of a party as an "insider" herein is not an acknowledgment or concession that such party is an insider under applicable bankruptcy law.

(7)
Amounts include estimated incurred and uninvoiced amounts, which are based on assumptions and available information believed to be reasonable at the time. Actual results however could differ from these estimates.

(8)
Includes fees related to the DIP Facility.

(9)
Amounts disclosed exclude interest and fees incurred and any payments related to the termination of the accounts receivable securitization facility.

(10)
Disclosed amounts represent principal and do not include any related debt discounts.

(11)
On November 19, 2015, the Bankruptcy Court entered the Order Providing Adequate Protection to Citizens Asset Finance, Inc. (Docket No. 969) pursuant to which the Debtors are required to make monthly payments in the amount of $57,209.06, among other things, as adequate protection of the interests of Citizens Asset Finance, Inc. in certain collateral, including an aircraft.

(12)
Amounts include prior period adjustments including a long-lived asset impairment of $4.8 billion recorded as of September 30, 2015.

(13)
Intercompany receivables are created in the normal course among the Debtors and their non-Debtor affiliates as a result of their use of a centralized cash management system.

(14)
Certain payments have been made on prepetition obligations, including certain (a) employee‑related obligations; (b) customer obligations; (c) sales & use, franchise, and other taxes and fees; and (d) obligations to trade creditors, in accordance with certain "first‑day" relief granted by the Bankruptcy Court.


Case Name:
Alpha Natural Resources, Inc., et al.
 
Case Number:
15-33896 (KRH) (Jointly Administered)
 
Page 20


(15)
Due to administrative issues and the process of reconciling claims, certain payments may periodically be delayed.

(16)
Pursuant to the Final Order, Pursuant to Sections 105(a),363(b),507(a) and 541 of the Bankruptcy Code, Authorizing the Debtors and Debtors in Possession to Pay Certain Prepetition Taxes (Docket No. 354), the Debtors are authorized to make payments on certain prepetition taxes.

(17)
Pursuant to the Final Order Authorizing the Debtors to: (A) Maintain, Continue and Renew Their Property, Casualty, Liability, Workers' Compensation and Other Insurance Programs, Policies and Agreements; and (B) Honor all Obligations in Respect Thereof (Docket No. 353), the Debtors are authorized to maintain their insurance programs and pay related obligations without interruption and in accordance with the same practices and procedures as were in effect prior to the Petition Date. The Debtors' insurance policies are identified in Exhibit C to the Motion of Debtors for Interim and Final Orders Authorizing the Debtors to (I) Maintain, Continue and Renew Their Property, Casualty, Liability, Workers' Compensation and Other Insurance Programs, Policies and Agreements and (II) Honor All Obligations in Respect Thereof (Docket No. 15) (the "Insurance Motion").

(18)
Further information regarding the Debtors' insurance programs is provided in the Insurance Motion.

(19)
Represents consolidated balances of both Debtor and non-Debtor entities.

(20)
Represents accounts receivable (net) inclusive of accruals for bad debt, amounts considered uncollectible and other receivables. Represents ending balance as of January 31, 2016.

(21)
Disclosed amounts exclude foreign taxes.

(22)
Reflects postpetition trade-related payables (excluding payables related to goods and services received, but not yet invoiced, and other miscellaneous accruals during the reporting period).










Case Name:
Alpha Natural Resources, Inc., et al.
 
Case Number:
15-33896 (KRH) (Jointly Administered)
 
Page 21