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ACI » Topics » The amount of indebtedness we have incurred could significantly affect our business.

This excerpt taken from the ACI 10-K filed Mar 1, 2010.
The amount of indebtedness we have incurred could significantly affect our business.
 
At December 31, 2009, we had consolidated indebtedness of approximately $1.8 billion. We also have significant lease and royalty obligations. Our ability to satisfy our debt, lease and royalty obligations, and our ability to refinance our indebtedness, will depend upon our future operating performance. Our ability to satisfy


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our financial obligations may be adversely affected if we incur additional indebtedness in the future. In addition, the amount of indebtedness we have incurred could have significant consequences to us, such as:
 
  •  limiting our ability to obtain additional financing to fund growth, such as new LBA acquisitions or other mergers and acquisitions, working capital, capital expenditures, debt service requirements or other cash requirements
 
  •  exposing us to the risk of increased interest costs if the underlying interest rates rise;
 
  •  limiting our ability to invest operating cash flow in our business due to existing debt service requirements;
 
  •  making it more difficult to obtain surety bonds, letters of credit or other financing, particularly during weak credit markets;
 
  •  causing a decline in our credit ratings;
 
  •  limiting our ability to compete with companies that are not as leveraged and that may be better positioned to withstand economic downturns;
 
  •  limiting our ability to acquire new coal reserves and/or plant and equipment needed to conduct operations; and
 
  •  limiting our flexibility in planning for, or reacting to, and increasing our vulnerability to, changes in our business, the industry in which we compete and general economic and market conditions.
 
If we further increase our indebtedness, the related risks that we now face, including those described above, could intensify. In addition to the principal repayments on our outstanding debt, we have other demands on our cash resources, including capital expenditures and operating expenses. Our ability to pay our debt depends upon our operating performance. In particular, economic conditions could cause our revenues to decline, and hamper our ability to repay our indebtedness. If we do not have enough cash to satisfy our debt service obligations, we may be required to refinance all or part of our debt, sell assets or reduce our spending. We may not be able to, at any given time, refinance our debt or sell assets on terms acceptable to us or at all.
 
These excerpts taken from the ACI 10-K filed Feb 27, 2009.
The amount of indebtedness we have incurred could significantly affect our business.
 
At December 31, 2008, we had consolidated indebtedness of approximately $1.3 billion. We also have significant lease and royalty obligations. Our ability to satisfy our debt, lease and royalty obligations, and our ability to refinance our indebtedness, will depend upon our future operating performance. Our ability to satisfy our financial obligations may be adversely affected if we incur additional indebtedness in the future. In addition, the amount of indebtedness we have incurred could have significant consequences to us, such as:
 
  •  limiting our ability to obtain additional financing to fund growth, such as new LBA acquisitions or other mergers and acquisitions, working capital, capital expenditures, debt service requirements or other cash requirements
 
  •  exposing us to the risk of increased interest costs if the underlying interest rates rise;
 
  •  limiting our ability to invest operating cash flow in our business due to existing debt service requirements;
 
  •  making it more difficult to obtain surety bonds, letters of credit or other financing, particularly during weak credit markets;
 
  •  causing a decline in our credit ratings;
 
  •  limiting our ability to compete with companies that are not as leveraged and that may be better positioned to withstand economic downturns;


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  •  limiting our ability to acquire new coal reserves and/or plant and equipment needed to conduct operations; and
 
  •  limiting our flexibility in planning for, or reacting to, and increasing our vulnerability to, changes in our business, the industry in which we compete and general economic and market conditions.
 
If we further increase our indebtedness, the related risks that we now face, including those described above, could intensify. In addition to the principal repayments on our outstanding debt, we have other demands on our cash resources, including capital expenditures and operating expenses. Our ability to pay our debt depends upon our operating performance. In particular, economic conditions could cause our revenues to decline, and hamper our ability to repay our indebtedness. If we do not have enough cash to satisfy our debt service obligations, we may be required to refinance all or part of our debt, sell assets or reduce our spending. We may not be able to, at any given time, refinance our debt or sell assets on terms acceptable to us or at all.
 
The
amount of indebtedness we have incurred could significantly
affect our business.


 



At December 31, 2008, we had consolidated indebtedness of
approximately $1.3 billion. We also have significant lease
and royalty obligations. Our ability to satisfy our debt, lease
and royalty obligations, and our ability to refinance our
indebtedness, will depend upon our future operating performance.
Our ability to satisfy our financial obligations may be
adversely affected if we incur additional indebtedness in the
future. In addition, the amount of indebtedness we have incurred
could have significant consequences to us, such as:


 


































































  • 
limiting our ability to obtain additional financing to fund
growth, such as new LBA acquisitions or other mergers and
acquisitions, working capital, capital expenditures, debt
service requirements or other cash requirements
 
  • 
exposing us to the risk of increased interest costs if the
underlying interest rates rise;
 
  • 
limiting our ability to invest operating cash flow in our
business due to existing debt service requirements;
 
  • 
making it more difficult to obtain surety bonds, letters of
credit or other financing, particularly during weak credit
markets;
 
  • 
causing a decline in our credit ratings;
 
  • 
limiting our ability to compete with companies that are not as
leveraged and that may be better positioned to withstand
economic downturns;





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  • 
limiting our ability to acquire new coal reserves
and/or plant
and equipment needed to conduct operations; and
 
  • 
limiting our flexibility in planning for, or reacting to, and
increasing our vulnerability to, changes in our business, the
industry in which we compete and general economic and market
conditions.


 



If we further increase our indebtedness, the related risks that
we now face, including those described above, could intensify.
In addition to the principal repayments on our outstanding debt,
we have other demands on our cash resources, including capital
expenditures and operating expenses. Our ability to pay our debt
depends upon our operating performance. In particular, economic
conditions could cause our revenues to decline, and hamper our
ability to repay our indebtedness. If we do not have enough cash
to satisfy our debt service obligations, we may be required to
refinance all or part of our debt, sell assets or reduce our
spending. We may not be able to, at any given time, refinance
our debt or sell assets on terms acceptable to us or at all.


 




This excerpt taken from the ACI 10-K filed Mar 1, 2007.
The amount of indebtedness we have incurred could significantly affect our business.
      At December 31, 2006, we had consolidated indebtedness of approximately $1.2 billion. We also have significant lease and royalty obligations. Our ability to satisfy our debt, lease and royalty obligations, and our ability to refinance our indebtedness, will depend upon our future operating performance. We may be unable to generate sufficient cash flow from operations and future borrowings or other financing may be unavailable in an amount sufficient to enable us to satisfy our financial obligations or our other liquidity needs. Our ability to satisfy our financial obligations may be adversely affected if we incur additional indebtedness in the future. In addition, the amount of indebtedness we have incurred could have significant consequences to our business, including those listed below:
  •  making it more difficult for us to satisfy our debt covenants and debt service, lease payment and other obligations;
 
  •  increasing our vulnerability to general adverse economic and industry conditions;
 
  •  limiting our ability to obtain additional financing to fund future acquisitions, working capital, capital expenditures or other general operating requirements;

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  •  causing a downgrade in our credit ratings if we incur additional debt or are unable to service our existing debt;
 
  •  reducing the availability of cash flow from operations to fund acquisitions, working capital, capital expenditures or other general operating purposes;
 
  •  limiting our flexibility in planning for, or reacting to, changes in our business and the industry in which we compete; and
 
  •  placing us at a competitive disadvantage when compared to competitors with less relative amounts of debt.

EXCERPTS ON THIS PAGE:

10-K
Mar 1, 2010
10-K (2 sections)
Feb 27, 2009
10-K
Mar 1, 2007

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