The Coal King is racing to avoid bankruptcy
New York (CNN Business) - Robert Murray, the king of the coal industry and a forceful supporter of President Donald Trump, is fighting to save his mining empire from financial collapse.
Murray Energy, America's largest private coal miner, recently failed to make payments to lenders. The company entered into a forbearance agreement that buys it time to negotiate a restructuring. That grace period is scheduled to expire after Monday.
The cash crunch at Murray Energy, one of the most powerful and well-connected companies in the industry, underscores the enormous pressure facing the coal country. Countless coal companies have already filed for bankruptcy.
"It's a difficult time for anyone in the coal industry," said Phil Smith, director of communications and governmental affairs at the United Mine Workers of America. "The industry is in trouble. It has been in trouble for almost a decade now."
Trump's election in 2016 raised hopes in the coal industry for a revival. The president moved swiftly to slash environmental regulations and even installed a former coal lobbyist to lead the EPA.
However, the deregulatory push is being overwhelmed by market forces. Coal just can't compete with cheap natural gas and the plunging cost of solar, wind and other forms of renewable energy.
"Coal is not back," said Smith.
Read more: https://www.cnn.com/2019/10/11/business/coal-murray-energy-bankruptcy/index.html
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