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Forum - Wall Street Pit (Cloud Peak Energy - CLD)    Stock Due Diligence for All

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From: smokeeater11 (Rep: 57) reply to weegeDate: 03/15/2019 12:26
Forum: Wall Street Pit - Msg #2778553 - List CLD msgs Thread #674070271 (Rec: 7)
Re: It's bad but not bk bad. uhh despite mrs.doubtfire's 81 reco's yes it is.

Termination of Credit Facility

As disclosed in our Current Report on Form 8-K on November 13, 2018, Cloud Peak Energy Resources LLC (“CPE Resources”), a wholly owned subsidiary of CPE, provided PNC Bank, National Association with notice to terminate the Credit Agreement. The termination of the Credit Agreement was effective as of November 15, 2018. As of September 30, 2018, the $150 million Credit Agreement had a reduced availability of only $16.2 million of borrowing capacity based upon the quarterly financial covenant calculations. Any failure to meet those financial covenants could have resulted in an event of default under the Credit Agreement and cross-default under the indentures governing our senior notes. The Credit Agreement would have required CPE Resources to pay over $3.0 million in additional commitment and administrative fees during the remaining term of the Credit Agreement through May 2021, which will now be avoided. For additional information, see Note 18 of Notes to Consolidated Financial Statements in Item 8.

Significantly Reduced Liquidity

Subsequent to the termination of the Credit Agreement, our liquidity was comprised of cash and cash equivalents, because the A/R Securitization Program was fully utilized to issue letters of credit as collateral for the reclamation surety bond providers. As of December 31, 2018, our total available liquidity was $91.2 million. As of March 8, 2019, our total available liquidity was $65.5 million, and we expect to continue using additional cash that will further reduce this liquidity.

Ability to Continue as a Going Concern

Our reduced liquidity, most notably with the termination of our Credit Agreement in November 2018 due to the limited availability thereunder based on the financial covenants, along with our forecasts projecting lower levels of operating cash flow have limited our access to the capital markets. Our liquidity is now limited to cash and cash equivalents. Our forecasted cash from operations alone is insufficient to fund cash interest and capital expenditures. This has resulted in our conclusion that there is substantial doubt about our ability to continue as a going concern. As a result, we will continue to pursue options to alleviate this condition, including but not limited to evaluating our restructuring options, but there can be no guarantees that this will alleviate the substantial doubt that exists. Our consolidated financial statements have been prepared assuming we will continue as a going concern, which contemplates continuity of operations, realization of assets and the satisfaction of liabilities in the normal course of business. As a result, the accompanying consolidated financial statements do not include any adjustments relating to the recoverability and classification of assets and their carrying amounts, or the amount and classification of liabilities that may result should we be unable to continue as a going concern.

On March 14, 2019, we entered into a Forbearance Agreement (the “Forbearance Agreement”) by and among Cloud Peak Energy Receivables LLC, CPE Resources and PNC Bank, National Association, as administrator, relating to our A/R Securitization Program, which provides that PNC Bank, National Association will not exercise any of its remedies upon a default under the A/R Securitization Program based on the existence of substantial doubt regarding our ability to continue as a going concern. Pursuant to the Forbearance Agreement, the forbearance period terminates on the earlier of (i) April 14, 2019 and (ii) the date on which any additional events of default may occur, as specified therein.

https://www.sec.gov/Archives/edgar/data/1441849/000110465919014968/a19-30091_110k.htm



Reply to weege - Msg #2778540 - 03/15/2019 12:03

It's bad but not bk bad. Payment due on 4/14 is $1.8m and they have $65m. Re: assets slashed and going bankrupt odd how many fans this pos has,,,
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