With no end in sight to cash burn, Alpha Natural creditors' alarm grows

|About: Alpha Natural Resources, Inc. (ANRZQ)|By:, SA News Editor

The plunge in coal prices that has sent smaller competitors into bankruptcy is alarming bondholders in Alpha Natural Resources (ANR), as the no. 2 U.S. coal producer consumes more cash than ever, Bloomberg reports.

ANR’s $3.43B of debt equals 37.9x EBITDA, highest among U.S. coal producers, and its bonds have lost more than 9% this year, the most among met coal producers in the Bloomberg High Yield Corporate Bond Index.

"It’s going to get worse before it starts getting better," one analyst says. "It’s a completely oversupplied market."