Illinois coal producer Foresight Energy LP (NYSE: FELP) announced Dec. 10 that Foresight Energy LLC (FELLC) has received written notice from the Administrative Agent of the Credit Agreement, originally dated as of Aug. 12, 2010, claiming that FELLC is in default under the Credit Agreement as a result of a recently announced opinion of the Delaware Chancery Court.
The Administrative Agent has informed FELLC that it has reserved all its rights and remedies under the Credit Agreement including, but not limited to, the right to: declare the commitment of each lender to make loans and any obligation of letter of credit issuers to make letter of credit extensions terminated; declare the unpaid amount of all outstanding loans to be immediately due and payable; and require collateral for all outstanding letter of credit obligations.
The company didn’t say what it plans to do from here about this situation.
Foresight is a leading coal producer in the Illinois Basin region with control of over three billion tons of coal reserves currently supporting four mining complexes. Foresight’s logistics give each of its mining complexes multiple modes of transportation to reach the end-users for its coal, including rail, barge and truck. Foresight serves both the domestic and international markets.