James River Coal Company Files Form NT 10-K - Notification of inability to timely file Form 10-K
Just filed.
On February 7, 2014, James River Coal Company (the “Company”) issued a press release announcing that it is exploring and evaluating potential strategic alternatives for the Company, which might include a capital investment or a sale of all or one or more portions of the Company. In conjunction with the strategic review, the Company amended its Credit Agreement (as described in the Company’s Current Report on Form 8-K, filed February 12, 2014) to provide the Company with continued access to its Credit Agreement and agreed, as required by the lenders there under, to achieve certain milestones within the strategic review process. Achieving the milestones and completing the strategic review process within the timeframe required by the lenders has required a considerable amount of management’s time.Two of these in one day.
The Company’s financial statements and other disclosures to be included in its annual report on Form 10-K for the year ended December 31, 2013 are not complete because of the time requirements of the strategic review process and the significant accounting and reporting issues related to both the strategic review process and the previously announced adjustments to the Company’s mining operations, including the closure and idling of mines. Additionally, given the Company’s current liquidity needs and the uncertainty surrounding the outcome of our strategic review process, our auditors have communicated to us that if they were to deliver an audit opinion based on the current circumstances, their audit opinion would contain a going concern qualification.
Based on preliminary information currently available, the Company anticipates that its results of operations for the year ended December 31, 2013 will be significantly different from the results of operations for the year ended December 31, 2012.
In the Company’s Form 10-Q for the period ended September 30, 2013, the Company reported an operating loss for the nine months ended September 30, 2013 of $102.7 million compared to an operating loss of $45.2 million in the nine months ended September 30, 2012. The Company expects that the fourth quarter operating loss in 2013 will be materially higher than the operating loss of $66.2 million in the fourth quarter of 2012, although the Company is unable to estimate the amount of such loss at this time. The 2013 fourth quarter loss will be impacted by anticipated charges associated with the idling and closure of the mines as described above. These charges could include but are not limited to fixed asset impairment, additional reserves on prepaid royalties and inventory and increases in the reclamation liability associated with the change in mine plans.
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