Coal Miner Alpha Natural To Seek Bankruptcy Protection

Alpha Natural Resources, the second-largest U.S. coal company, filed for Chapter 11 bankruptcy protection as the ailing coal industry got another black mark on Monday.

Reflecting the latest move, Alpha shares dropped more than a cent to 3 1/2 cents in over-the-counter trading Tuesday.

As Alpha Natural Resources files bankruptcy protection, coal industry fights for survival

When the industry’s outlook was rosier, Alpha Natural Resources and its rivals took the debt route to finance acquisitions earlier this decade. In 2011, Alpha Natural bought Massey Energy Co. for about $7 billion, which made it the biggest U.S. producer of metallurgical coal (used in steelmaking).

However, the price of metallurgical coal has hit an...