Reportedly, a prominent American coal mining company is seeking bankruptcy protection. The move arrives even after a blow of regulatory breaks that its CEO had pressed for and gained from the Trump government. It seems like the slow death of the American coal industry has forced Murray Energy to file for liquidation protection on Tuesday. Despite being the most significant private coal miner in the United States, it has decided to opt the way. Analysts have estimated Murray Energy’s bankruptcy for years. The coal giant has recently failed to make payments to lenders. As a result, the company has entered into a forbearance agreement that has bought it time to discuss restructuring. But that grace period was for a while, which came and has gone now. Even after getting a timeframe, Murray Energy has failed to pay its bills.
On the other hand, the Trump administration has invested three years attempting to assist the coal industry by resetting environmental policies and pressing for subsidies for coal-fired power plants. Still, the list of coal companies filing for bankruptcy is increasing. Currently, dozens of coal companies have announced their closure since President Trump’s arrival. The list includes Blackjewel Mining in West Virginia and Cloud Peak Energy in Wyoming.
Even more, Murray’s filing for bankruptcy marks a crucial political failure for the President, who had promised to end the so-called war on coal by Democrats. Notably, it was a crucial part of his campaign and early presidency. According to the former CEO of Murray Energy, Robert Murray, the move was essential to access cash and best position it for sustainable success. Apart from this, Murray has had strong ties with the Trump administration. The executive has also donated $300,000 to Trump’s inauguration and has discussed with administration officials to develop the coal industry’s interest. Murray Energy was the country’s fourth-largest coal producer in the last year. As per the Energy Information Administration, it accounted for 6% of the overall production of coal.
Kevin has worked as a business executive in an insurance firm before joining Janmorgan Media as the major business correspondent. After joining here, he has helped craft not only some of the insightful articles but also regular articles that don’t compromise perspective. If not checking out business publications or news, you can see her listening to music.