March 17 James River Coal Co, which is
grappling with a liquidity crunch, said it would not make the
interest payment due on Monday on $230 million of its
convertible senior notes.
The company's shares fell about 14 percent in trading after
James River, which had a long-term debt of $425.4 million as
of Sept. 30, said the 3.125 percent convertible senior notes
would mature in 2018.
The company said in a regulatory filing that it had 30 days
to make the payment to avoid a default.
James River also said it had delayed regulatory filing of
its results for the quarter and year ended Dec. 31 as it was
exploring selling itself, among other strategic alternatives.
The coal miner said last month that it was exploring
James River said on Monday its auditors warned that an audit
of its results would qualify it as a going concern due to its
The company idled seven mines in Central Appalachia in
eastern United States between September and November as weak
demand and excess supply weighed on prices of both metallurgical
and thermal coal for the past year or so.
James River had $60.2 million of cash and cash equivalents
as of Sept. 30.
The company's shares closed at 70 cents on Monday on the