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Murray to lay off some Armstrong employees but keep Ky. coal mines open

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Murray to lay off some Armstrong employees but keep Ky. coal mines open

Murray Energy Corp. will continue to operate Armstrong Energy Inc. coal mines in western Kentucky's Muhlenberg and Ohio counties but will lay off some employees, according to a letter Murray sent to Armstrong personnel.

Murray is set to acquire a majority interest in a new company that will hold certain assets of Armstrong, which filed for Chapter 11 bankruptcy reorganization in 2017, including the Kentucky mines.

The Messenger, a newspaper serving Hopkins County, Ky., reported that Murray sent a letter to Armstrong staff dated Jan. 24 that said it intended to hire "a substantial portion of the Armstrong workforce" and will extend job offers Feb. 9 to the workers who will be retained.

Murray Energy did not respond to a request for comment on the letter.

CEO Robert Murray, who gave the opening speech at the 2018 Coaltrans conference Feb. 1, told S&P Global Market Intelligence afterward that he expects the Kentucky mines to produce 3.5 million tons of coal this year and plans to export about 2 million tons through Gulf Coast ports where Murray Energy has existing export options.

Murray Energy entered into a legally binding transaction agreement with Armstrong Energy and certain senior secured noteholders to acquire a 51% ownership interest in a new company that will own the assets formerly owned by Armstrong while the noteholders will hold a 49% ownership interest in the company. The transaction must still be approved by the U.S. Bankruptcy Court for the Eastern District of Missouri, which is administering Armstrong's bankruptcy case.