Foresight Energy makes progress on effort to rework debt

Illinois coal producer Foresight Energy LP reported in a May 23 SEC filing that it has made progress lately working out debt relief.

On May 17, Foresight Energy LLC and Foresight Energy Finance Corp., together with Foresight Energy LP, Foresight Energy GP LLC and certain other subsidiaries of Foresight Energy LP entered into a Transaction Support Agreement with certain holders of 7.875% Senior Notes due 2021, pursuant to which the parties have agreed to support a proposed global restructuring of the Partnership’s indebtedness and certain governance and equity matters relating to the Partnership.

Also, on May 20, the Partnership entered into an agreement with certain holders of the notes to extend the term of the existing forbearance agreement that was entered into on Dec. 18, 2015. As a result of the extension, the forbearance period now runs through July 15, unless further extended by the noteholders in their sole discretion or unless earlier terminated in accordance with its terms.

Foresight, founded by coal operator Chris Cline, runs several longwalls at Illinois underground mines that produce high-sulfur coal primarily for power generation.

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.