Atlantic Coal has agreed a deal to pay off the loan note that was originally issued to the General Electric Capital Corporation.
Last December Mayford LLC a company owned by MD Mr Steve Best and chairman Mr Adam Wilson bought the loan note for USD 1.5 million in cash. Now Mayford have agreed to discharge the loan in full in return for a USD 2.1 million upfront cash payment.
As of the 30 April 2011 the loan note was worth including all principal, accrued interest and penalty interest.
In a separate statement Mr Steve Best told investors that Atlantic coal is undoubtedly positioned for further growth this year. In a statement ahead AGM Best reflected on 2010 describing it as a year of success in which increased production capacity and raised a total of EUR 13.7 million in new capital.
Mr Steve said “We now have the foundations in place to implement our strategy to increase our resource base, both organically and via acquisition and we look forward to the coming year with confidence.
He said that "In light of our strengthened cash position, we have focussed on restructuring our balance sheet to a size more appropriate to that of the company. Best said that this morning’s deal is the final stage of this process.”
Speaking about the operation on the ground in Pennsylvania Mr Best said: “The production outlook at the Stockton Colliery for 2011 remains positive. He said that our production profile for Q1 2011 was strong, nearing that of our best three months in 2010 in spite of severe weather conditions experienced during the period. We are now focused on boosting production further and to this end.”
Mr Best added that "The market conditions within the high quality coal industry are very conducive for growth, with strong local and international demand for our product, particularly from the steel industries in China and India.
He said “This adds further incentive for increasing our resource base and to this end we continue to evaluate additional synergistic opportunities in Pennsylvania to consolidate our mining operations. It should be noted that we have a stringent due diligence process in place to ensure that potential sites will provide significant uplift.”