James River Coal further in the red

FINANCIAL woes have prompted James River Coal to consider selling up after the company missed an interest payment.

Sadie Davidson

In a filing today the Virginia-based company said it would fail to make a payment on its 3.125% convertible notes due 2018.

The company said it was entitled to a 30-day grace period in which to make the payment before a default was deemed to have occurred.

JRC began exploring its options when it hired Perella Weinberg Partners as a restructuring adviser, Deutsche Bank as its mergers and acquisitions adviser and Davis Polk & Wardwell as legal adviser.

Other options being evaluated include issuing debt and selling equity.

The company idled three mining complexes last year and hasn’t posted an annual net profit since 2010.