"SNL Energy: James River Coal's recovery from bankruptcy could be hindered by contracts" $JRCC
Wow, no wonder they have to keep postponing the auction, indeed - SNL article:
"But James River also is burdened by a wealth of expiring utility contracts and a sharp decline in coal purchases in 2013 compared to 2012. The biggest blow was Southern Co.'s decision to all but cease coal purchases from Central Appalachia by 2016 and retire units at three older, coal-fired power plants in Georgia.CAPP coal can't compete with PRB coal, which is an order of magnitude more efficient per employee hour.
On a companywide basis, James River was the largest supplier of Central Appalachian coal to Southern plants in 2012, shipping 1.7 million tons to the company. Southern was James River's largest utility customer overall in 2012, and it purchased exclusively Central Appalachian coal from the company.
Based on U.S. Energy Information Administration fuel contract data, nearly 51% of the Central Appalachian coal and about 31% of the total coal delivered to electric utilities by James River in 2012 went to Southern-operated plants. The diminishing number of sales contracts also may limit interest in James River's assets."
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1 comment:
James River failed where so many other companies do. They needed to look further into their own future and take note of the declining opportunities.
I hope they are able to get out of this bankruptcy drama sooner rather than later!
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