BRISTOL, Tenn., Oct. 13, 2020 /PRNewswire/ -- Contura
Energy, Inc. (NYSE: CTRA) today issued the following statement in
response to the letter the Company's Board of Directors received
from MG Capital Management, Ltd.:
Contura welcomes the opportunity to engage with its shareholders
and we welcome constructive input relating to enhancing shareholder
value. We remain focused on delivering long-term shareholder value
and will continue to take actions to achieve that objective.
Although we would have preferred that MG Capital engage with
Contura privately, we have reviewed and considered the MG Capital
letter. MG Capital, the Board, and the executive management team
are closely aligned in their goals and strategic direction for the
Company; however, we believe that a number of the underlying
assertions in the letter are inaccurate and we wish to clarify some
of them.
As coal industry investors are aware, the last year has been one
of the most challenging years for U.S. coal producers due to a
variety of factors, including weak global coal demand, low coal
prices, and, of course, the COVID-19 pandemic. Contura's executive
management, in concert with its Board, acted quickly to rationalize
its production and cut costs to manage through these
issues.
The Board of Directors and the executive team share MG Capital's
desire that Contura exit the thermal coal sector as efficiently as
possible consistent with the best interests of the shareholders.
The Company has already undertaken and announced various steps to
achieve that goal. As previously announced, Contura is actively
marketing the Cumberland mine for
divestiture, which, if successful, will constitute a major element
of the Company's planned exit from the thermal coal sector. The
Board of Directors has fully supported the executive team in both
the development of the Company's thermal exit strategy and in the
steps that have already been taken to implement that strategy.
Contura attempted to divest its Powder River Basin thermal coal
properties through a transaction with Blackjewel L.L.C. in
December 2017, prior to the merger
between Contura and Alpha Natural Resources. Unfortunately,
Blackjewel filed for Chapter 11 bankruptcy protection on
July 1, 2019, before the transfer of
certain mining permits to Blackjewel was completed. Because the
transfer of the permits had not been completed, the contingent
reclamation liability related to the permits remained an obligation
of Contura. When this occurred, Contura was able to move quickly to
relieve itself of all liabilities related to the former
Wyoming operations with a
transaction with Eagle Specialty Materials. This transaction was
completed with the unanimous support of the Board of Directors.
This concluded the Company's exit from its thermal-coal operations
in the Powder River Basin and it no longer retains any contingent
liability related to those operations.
With respect to Board and executive management compensation, the
Board has in fact reacted to the COVID-19 pandemic. In May 2020, each member of the executive management
team voluntarily took a 5% reduction in salary. In the same month,
the Board's compensation committee, which includes all of the
"legacy directors," as defined in the MG Capital letter,
unanimously determined that all of the Company's non-employee
directors should join the Company's executive management in this
effort by accepting a 5% reduction in their annual retainers. We
have been advised by our compensation consultants that our Board
compensation is well within the norms of our peers.
Contura's executive management team believes that each of the
Company's directors, including the "legacy directors," have
provided value to the Company and its stockholders, and that
executive management has the complete support of the Board,
including with respect to the Company's focus on strategic
initiatives, such as its transition to a pure-play metallurgical
products provider, its focus on safe and productive operations, and
its pursuit of aggressive cost control.
Pursuant to our corporate governance guidelines, the Board
routinely considers issues such as the size and composition of the
Board of Directors to provide fresh perspectives and additional
expertise consistent with our goals. Indeed, as the needs of the
Company have evolved, the Board reduced the overall size of the
Board by two, with four directors leaving, while adding two new
directors—Emily Medine and Scott Vogel—since mid-2019. The Board
welcomes input from the Company's stockholders, including MG
Capital, regarding size and composition of the Board.
ABOUT CONTURA ENERGY
Contura Energy (NYSE: CTRA) is a Tennessee-based coal supplier with affiliate
mining operations across major coal basins in Pennsylvania, Virginia and West
Virginia. With customers across the globe, high-quality
reserves and significant port capacity, Contura Energy reliably
supplies metallurgical coal to produce steel. For more information,
visit www.conturaenergy.com.
FORWARD-LOOKING STATEMENTS
This news release includes forward-looking
statements. These forward-looking statements are based on
Contura's expectations and beliefs concerning future events and
involve risks and uncertainties that may cause actual results to
differ materially from current expectations. These factors are
difficult to predict accurately and may be beyond Contura's
control. Forward-looking statements in this news release or
elsewhere speak only as of the date made. New uncertainties
and risks arise from time to time, and it is impossible for Contura
to predict these events or how they may affect Contura. Except
as required by law, Contura has no duty to, and does not intend to,
update or revise the forward-looking statements in this news
release or elsewhere after the date this release is issued. In
light of these risks and uncertainties, investors should keep in
mind that results, events or developments discussed in any
forward-looking statement made in this news release may not
occur.
INVESTOR
CONTACT
investorrelations@conturaenergy.com
Alex Rotonen, CFA
423.956.6882
MEDIA
CONTACT
corporatecommunications@conturaenergy.com
Emily O'Quinn
423.573.0369
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SOURCE Contura Energy, Inc.