The company is attempting to stem the flow of cash and is hoping to follow the example of Walter Energy and Patriot Coal who also sought to lower payouts while under bankruptcy protection.
A hearing has been set for April 12.
“If such cost savings cannot be achieved globally, then the debtors may be forced to liquidate their assets, to the detriment of all stakeholders, including all union employees,” the company said in court papers.
“The debtors recognize that any reduction in compensation or benefits causes hardship on current and former union employees,” Alpha said in the court filings.
“The debtors can achieve a successful restructuring, however, only with shared sacrifice from all of their stakeholders.”
The company is preparing for an auction of its assets on May 16 while its lenders have agreed to forgive $US500 million in debt in exchange for certain Alpha mines.
