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Alpha Natural Resources D.I.P. Amendment, Seal Approved

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The U.S. Bankruptcy Court approved Alpha Natural Resources’ motion for a supplemental order, pursuant to 11 U.S.C. Section 105, 363 and 364, authorizing an amendment to its D.I.P. credit agreement that provides for increased letter of credit commitments and payment of related fees.

As previously reported, “Through this Motion, the Debtors seek authority to (a) supplement their debtor in possession financing (the ‘DIP Financing’) by adding up to $30 million of additional letter of credit capacity under the Term L/C Facility…and (b) pay required fees associated with this increase in financing capacity. The Debtors have needs for additional letter of credit capacity in connection with the ongoing ordinary course operation of their businesses. As described in more detail in the Debtors’ original motion to approve the DIP Financing (Docket No. 27) (the ‘Original DIP Motion’), the Debtors initially had contemplated adding capacity to issue additional letters of credit in connection with a new revolving credit facility to replace their prepetition receivables facility with General Electric Capital Corp. In particular, the DIP Order expressly contemplated the addition of a DIP Revolving Facility in an amount of up to $200 million for this and other purposes. At the current juncture, however, the Debtors have been unable to obtain the DIP Revolving Facility and have determined that their need for additional letter of credit capacity can most efficiently be satisfied through an amendment to the Term L/C Facility that will permit the Debtors to issue up to $30 million in new letters of credit.”

The Court also approved the Debtors’ motion to file related fee letters under seal. Read more ANR bankruptcy news.