Murray energy filed for bankruptcy protection

On October 29, Murray energy, the largest private coal company in the United States, filed for bankruptcy protection as power companies moved towards cleaner natural gas and renewable energy. As part of the restructuring, Robert Murray, one of the founders of Murray energy, will step down as CEO, and the company has reached restructuring agreements with some lenders, accounting for more than 60% of the company's $1.7 billion debt.

Although it is not an easy decision to apply for bankruptcy protection, in order to make our employees and customers in the future and the long-term development of the company, it is necessary to achieve capital turnover and put the company and its subsidiaries in the best position. Robert Murray said in a statement. The trump government has weakened or cancelled dozens of environmental regulations that Murray energy and other executives regard as a burden on the coal industry, but the company still applied for bankruptcy protection. Due to the competitive pressure of renewable energy and cheap natural gas, American coal enterprises have been struggling. In the early days of President Trump's presidency, Murray energy submitted to the government a list of wishes to weaken environmental regulations. In the past two years, as natural gas has become the most important fuel for power generation in the United States, another eight American coal enterprises have applied for bankruptcy protection, and the proportion of coal in the power structure has declined. The share of coal in the U.S. power mix is expected to drop from 25% this year to 22% by 2020, according to the EIA. In 2003, coal accounted for as much as 50% of the U.S. power mix. The energy information administration predicts that coal consumption in the U.S. power sector will be lower in 2019 than in 1979. In addition to relaxing regulations on coal-fired power plants, the U.S. government also tried to use emergency laws to support the coal industry.

For example, Rick Perry, the US energy secretary, believes that coal-fired power plants can increase the flexibility of power grid, and advocates a 2017 law to provide subsidies to old units to slow down the decommissioning of coal-fired and nuclear power plants. However, federal regulators rejected Perry's plan and said they would study the issue further. Murray energy is a donor to the 2016 trump presidential campaign and an active participant in government events. Prior to that, Murray Energy announced at the EPA headquarters that it planned to repeal the carbon law of "clean energy planning" issued during the Obama administration. Murray energy plans to continue operating during Chapter XI bankruptcy protection, with $350 million from lenders in addition to cash holdings. During the period, Robert Moore will replace Murray as the president and CEO of the company to manage the board of directors.