The recent drop in coal demand due to the economic downturn has weakened coal pricing and heightened concerns on meeting the year-end step-up in covenant requirements. This amendment eases those debt covenant requirements, said the company.
ICG currently has $26.4m in borrowing capacity available under the credit facility, with $73.6m currently used for letters of credit issued to support the company’s reclamation bonds and other bonding requirements.
Ben Hatfield, president and CEO of ICG, said: “We are pleased to have reached an agreement with our banks to address short-term tightness in our debt covenants. We expect to be in full compliance with our covenants going forward.”
