Arch Coal (ACI)

 

The crisis in domestic and international financial markets has had a significant adverse impact on a number of financial institutions. Since the beginning of the crisis, our ability to issue commercial paper up to the maximum amount allowed under the program has been constrained. The ongoing uncertainty in the financial markets may have an impact in the future on: the market values of certain securities and commodities; the financial stability of our customers and counterparties; availability under our lines of credit; the cost and availability of insurance and financial surety programs, and pension plan funding requirements. We had available borrowing capacity of $740 million under our lines of credit at December 31, 2009. We also had $61 million of cash and cash equivalents on hand at December 31, 2009. Management will continue to closely monitor our liquidity, credit markets and counterparty credit risk. Management cannot predict with any certainty the impact to our liquidity of any further disruption in the credit environment.

 

 

The crisis in domestic and international financial markets has had a significant adverse impact on a number of financial institutions. Since the beginning of the crisis, our ability to issue commercial paper up to the maximum amount allowed under the program has been constrained. The ongoing uncertainty in the financial markets may have an impact in the future on: the market values of certain securities and commodities; the financial stability of our customers and counterparties; availability under our lines of credit; the cost and availability of insurance and financial surety programs, and pension plan funding requirements. At this point in time, however, our liquidity has not been materially affected. In response to the current credit markets, we strengthened our liquidity position by building a cash balance of $70.6 million as of December 31, 2008 and by diversifying our borrowings among our lines of credit. While we expect our ability to issue commercial paper will be affected by the current credit markets, we believe we have sufficient liquidity under our credit facilities to satisfy working capital requirements and fund capital expenditures, if needed. We had available borrowing capacity of $641.4 million under our lines of credit at December 31, 2008 in addition to our cash on hand. Management will continue to closely monitor our own liquidity, credit markets and counterparty credit risk. Management cannot predict with any certainty the impact to our liquidity of any further disruption in the credit environment.

 

 

The crisis in domestic and international financial markets has
had a significant adverse impact on a number of financial
institutions. Since the beginning of the crisis, our ability to
issue commercial paper up to the maximum amount allowed under
the program has been constrained. The ongoing uncertainty in the
financial markets may have an impact in the future on: the
market values of certain securities and commodities; the
financial stability of our customers and counterparties;
availability under our lines of credit; the cost and
availability of insurance and financial surety programs, and
pension plan funding requirements. At this point in time,
however, our liquidity has not been materially affected. In
response to the current credit markets, we strengthened our
liquidity position by building a cash balance of
$70.6 million as of December 31, 2008 and by
diversifying our borrowings among our lines of credit. While we
expect our ability to issue commercial paper will be affected by
the current credit markets, we believe we have sufficient
liquidity under our credit facilities to satisfy working capital
requirements and fund capital expenditures, if needed. We had
available borrowing capacity of $641.4 million under our
lines of credit at December 31, 2008 in addition to our
cash on hand. Management will continue to closely monitor our
own liquidity, credit markets and counterparty credit risk.
Management cannot predict with any certainty the impact to our
liquidity of any further disruption in the credit environment.