Clayton-based Armstrong Energy is considering filing for Chapter 11 bankruptcy due to “recurring losses from operations”.
In a quarterly report that was filed on Friday, the company reported $17.2 million loss on revenue of $60.9 million, which is a “substantial decline in cash flows from operating activities over the previous 24 months.”
The report states that Armstrong Energy isn’t confident regarding their ability to continue as a business.
“Our continuing operating losses, negative cash flow projects, Indenture default and other liquidity risks raise substantial doubt about whether we will meet our obligations as they become due over the next year,” the report reads. “As a result of this, as well as the continued uncertainty around future coal fundamentals, we have concluded there exists substantial doubt regarding our ability to continue as a going concern.”
Armstrong Energy was not immediately available for comment.
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