Murray Energy agrees to purchase Armstrong Energy

On 24 January 2018, Murray Energy Corporation (Murray) announced it had acquired 51% interest in Armstrong Energy, Inc. (Armstrong) for US$31 million in total consideration. On 1 November 2018, Armstrong filed for Chapter 11 bankruptcy protection in the US Bankruptcy Court for the Eastern District of Missouri. At the time of the filing, Armstrong stated Knight Hawk Coal, LLC (Knight Hawk) would acquire all of Armstrong's mines. Knight Hawk was Armstrong's largest debtholder and had offered to forgive its debt for 100% equity in the post-bankruptcy Armstrong. During the bankruptcy process, Murray outbid Knight Hawk by offering US$19 million in cash and US$12 million in new debt for 51% of the post-bankruptcy Armstrong. The remaining 49% would be owned by Armstrong's current secured debtholders.