NEW YORK--(BUSINESS WIRE)--Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, is investigating potential claims against Contura Energy, Inc. (NYSE: CTRA) on behalf of Contura stockholders. Our investigation concerns whether Contura has violated the federal securities laws and/or engaged in other unlawful business practices.
Click here to participate in the action.
In December 2017, Contura sold several of its mines and other assets to Blackjewel L.L.C, with Contura receiving deferred consideration of up to $50 million through various royalty payments and eliminating approximately $200 million in undiscounted reclamation obligations associated with the assets.
Then, in November 2018, Contura merged with Alpha Natural Resources Holdings, Inc. and ANR, Inc. (the “Merger”), touting that the business combination would result in “robust competitive positioning in both domestic and international coal markets.” In the Merger’s registration statement, Contura acknowledged that failure to finalize permit transfers of its assets to Blackjewel “could materially and adversely affect the combined company’s business.” To help facilitate a successful permit transfer, the Merger agreement disclosed that Contura had agreed to backstop certain of Blackjewel’s bonding obligations and that Blackjewel would enter into financing by June 30, 2019, sufficient to release Contura ownership of the mines.
However, on July 1, 2019, Blackjewel filed for Chapter 11 bankruptcy prior to the completion of the permit transfer, forcing Contura to repurchase the mines.
Finally, in October 2019, Contura closed the sale of its reclaimed assets to Eagle Specialty Materials, LLC, with Contura paying $90 million to Eagle Specialty to acquire the mines and assume the related reclamation obligations.
Before the Merger, shares of Contura were trading around $67 per share. Since then, Contura’s shares have dropped precipitously. On August 4, 2020, Contura shares closed at $4.13 per share.
If you purchased or otherwise acquired Contura shares and suffered a loss, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Melissa Fortunato or Marion Passmore by email at email@example.com, or telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York and California. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.