CHARLESTON, W.Va. — Alpha Natural Resources Holdings and ANR Inc. have announced some restructuring of stock shares.
The boards of both companies voted on the move, which was announced Friday.
Outstanding shares of the existing classes and series of stock would be exchanged for new shares at different exchange ratios.
“We have heard from our stockholders that the existing structure, with multiple stock classes and distribution rights, makes Alpha more difficult for the market to understand,” Alpha CEO David Stetson stated in a news release.
“The proposed streamlining transaction will bring clarity to the markets, help unlock value for our stockholders, and position Alpha for its next phase of development by reducing the number of stock classes and eliminating complexities with respect to corporate governance and economic rights for these numerous stock classes.”
If approved by the stockholders, Alpha Natural Resources Holdings will have a single trading class of common stock, compared to its current capital structure of common stock and two series of preferred stock, all of which trade.
ANR will have two classes of common stock (one of which would trade), compared to its current capital structure of
three classes of common stock, one of which trades, and two series of preferred stock, both of which trade.
Alpha says it has reached preliminary agreement with several large stockholders regarding their support for the proposed streamlining transactions.
Alpha declared bankruptcy in 2015, emerging in 2016.