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Coal mining giant Alpha Natural Resources goes belly up

Back in August 2015, the US coal mining giant Alpha Natural Resources filed for bankruptcy, facing billions in debt.

In 2011, it had bought out the mountaintop removal mining company Massey Coal from under coal baron Don Blankenship (recently convicted of conspiracy to avoid mine safety standards). The idea was to move more aggressively into Appalachian coal, banking on exports to compensate for the collapsing US coal market.

Instead, the $7.1 billion acquisition was a disaster, as coal exports failed to materialize.

In 2011, Alpha was trading at $65 a share. By the early part of 2015, it was down to around 35 cents. In July, the New York Stock Exchange suspended trading of Alpha stock in anticipation of its bankruptcy.

Since then, Alpha has laid off some 4,000 workers and filed for Chapter 11. Post-Massey, it operated well over 100 active mines; now it has closed all but 50.

Source: VOX