Xinergy Ltd. (TSX:XRG), a Central Appalachian coal producer, has terminated both a Letter Agreement with Aries Energy Group LLC and a Credit Agreement with Aries Energy Venture Investor LLC.
“The contemplated, and signed, proposed financing with Aries did not close,” said Xinergy in a brief Dec. 16 statement. “While the Company is and has been prepared to close the financing, Aries has failed to fulfill its obligations under the Credit Agreement, and fund the financing.”
As previously announced, the company said it 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.
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.