![]() Without access to that new money, Foresight would likely run out of cash needed to run the business within a week, Alan Boyko of FTI Consulting. In addition, existing lenders agreed to provide $100 million in new money to finance Foresight’s operations in bankruptcy, subject to court approval. Holders of 69% of Foresight’s first-lien loans and 82% of its second-lien notes have agreed to support Foresight’s bankruptcy plan, Moore said. More than 400 energy-related companies went bust between 2015 and the end of 2019, according to law firm Haynes & Boone. While Foresight has been struggling for years, its bankruptcy filing comes as investors have become skeptical about the credit quality of US energy companies after a crash in oil prices. It hasn’t posted an annual profit since 2014, and matters were made worse by 2019’s unusually heavy rains, which made rivers so high and swift that coal vessels had trouble delivering to power stations. ![]() The Motley Fool has a disclosure policy.Foresight, founded by the late billionaire Christopher Cline, signaled it was in trouble when it suspended its quarterly dividend in May, and again on October 1 when it missed a $24.4-million interest payment. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days. The Motley Fool has no position in any of the stocks mentioned. Reuben Brewer has no position in any stocks mentioned. And we think its stock price has nearly unlimited room to run for early in-the-know investors! To be one of them, just click here. ![]() Most investors would be better off on the sidelines for now.Ī secret billion-dollar stock opportunity The world's biggest tech company forgot to show you something, but a few Wall Street analysts and the Fool didn't miss a beat: There's a small company that's powering their brand-new gadgets and the coming revolution in technology. But as the events that led to the partnership's huge price advance in the back half of the month show, there's a lot more going on here than just coal mining. So from a business standpoint, the miner is well located. Yes, the miner is focused on the Illinois Coal Basin, a region that has some of the most desirable coal in the country. October was a rewarding month for investors in Foresight Energy LP. And it should provide the coal miner with a little extra breathing room financially, too, so it can better deal with the still difficult coal market. That work resulted in the announcement at the end of the month that a deal had finally been inked. The partnership has been talking to creditors to try to resolve the issue, and avoid bankruptcy, all year. In addition to the new board member, Foresight has been working to deal with that heavy-debt load and, perhaps more important, a technical default related to the investment that privately held Murray Energy made in the company in early 2015. But it's still only part of what happened last month. ![]() Foresight has been struggling under the weight of a heavy debt load, so a board member with M&A expertise could be an interesting development. The miner highlighted this particular board member as having merger-and-acquisition experience. Mid-October is an interesting time period because it coincides with the addition of a new board member to the partnership. ![]()
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