Subsequent Events

3 Months Ended

Mar. 31, 2014

Subsequent Events

Subsequent Events

Note 14—Subsequent Events

        On April 15, 2014, the Company announced the idling of its Canadian operations, which included the Wolverine, Brule and Willow Creek mines in British Columbia, beginning in April 2014. The Company expects to incur severance charges of approximately $7.0 million in the second quarter of 2014 in connection with the idling of these mines.

        On April 23, 2014, the Company agreed to issue an aggregate of 3,150,000 shares of its common stock, par value $0.01 per share, in exchange for $35.0 million aggregate principal of its 9.875% Senior Notes due 2020 held by a noteholder. The Company did not receive or pay any cash proceeds as a result of the exchange. Upon execution of the transaction, notes will be retired and cancelled. The Company expects to recognize a gain of approximately $12.0 million on the transaction.

        On May 2, 2014, the Company reached an agreement in principle with the Alabama State Port Authority to sell both the Blue Creek Terminal located in the Port of Mobile and an additional parcel of more than 60 acres of land for a total consideration of $25.0 million. Additionally, the parties have agreed in principle to amend and extend the existing coal handling agreement and make certain improvements to the coal handling facility at the port. The Company anticipates recording a net loss of approximately $20.0 million in connection with the sale.