Xinergy makes late interest payment; works on future options

Central Appalachian coal producer Xinergy Ltd. (TSX: XRG) said Dec. 12 that it will cure the previously announced default on the company’s 9.25% senior secured notes by making payment of approximately US$9m in interest owed on the notes.

The interest payment initially was due on Nov. 17, 2014. Xinergy said it is making the payment from cash from operations.

A contemplated, and signed, financing with Aries Energy Group Venture Investor LLC has not closed, although the company said it is prepared to close the financing.

Xinergy has retained Global Hunter Securities, a division of Seaport Global Securities LLC, a full-service investment bank focusing on natural resources-related sectors including Energy, Industrials and Shipping, as its financial advisor while Xinergy continues to pursue financial and strategic alternatives for itself.

“I am pleased to say that we continue to see cost reduction and positive operating results from our mining operations,” said Bernie Mason, Xinergy’s Chief Executive Officer. “Even in this difficult market environment, our mines continue to deliver. It is this continued success that has allowed us the financial flexibility to make the interest payment on the Notes.”

Headquartered in Knoxville, Tennessee, Xinergy Ltd., through its wholly owned subsidiary Xinergy Corp. and its subsidiaries, is engaged in coal mining in West Virginia and Virginia. Xinergy sells high quality metallurgical and thermal coal to electric utilities, steelmakers, energy trading firms and industrial companies.

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.