A few pieces of the bank debt of Horizon Natural Resources, formerly known as AEI Resources, was said to have traded in the mid- to high 50s last week after the company revised its EBITDA guidance downward by $60-70 million for the remainder of 2002. The revision puts future covenant compliance into question, and the company therefore has admittedly begun to speak with its banks to resolve the issue. Horizon has been hurt by operating difficulties at its Evergreen mine in West Virginia and by the unavailability of Section 404 permits in certain mines in Kentucky. Michael Nemser, cfo, could not be reached by press time.
EBITDA Revision May Cause Covenant Breach At Horizon