International Coal Group Receives Verdict In Allegheny Litigation
SCOTT DEPOT, W.Va., May 3, 2011 /PRNewswire/ -- International Coal Group, Inc.
('ICG' or 'Company') announced that it received on Monday afternoon, May 2, 2011, an adverse trial court ruling in the action filed by Allegheny Energy Supply and Monongahela Power Company ('Allegheny') in the Court of Common Pleas of Allegheny County, Pennsylvania. In its ruling today, the trial court judge held that ICG's Wolf Run subsidiary breached its coal supply agreement with Allegheny and is liable for past and future damages and interest in the total amount of $104,103,893.Allegheny, the sole customer of coal produced at Wolf Run's Sycamore No. 2 mine, filed a lawsuit in 2006 claiming that Wolf Run breached a coal supply contract when it declared force majeure upon temporarily idling the mine in the third quarter of that year. Allegheny also claimed that Wolf Run continued to breach the contract by failing to ship thereafter the volumes referenced in the contract. The court held a non-jury trial of this matter in January 2011.
'We are disappointed in the court's ruling today, and believe that the court misinterpreted both the factual underpinnings of the case as well as the applicable law,' said Roger Nicholson, ICG's Senior Vice-President and General Counsel. 'We intend to avail ourselves of post-verdict remedies and to appeal the ruling, if necessary.'
In the event of an appeal, the Company believes it has sufficient cash on hand and credit capacity to post any necessary appeal bond.
Prior to the ruling, ICG and Arch Coal, Inc.
had announced their intentions to merge. The Company does not expect the court's ruling to adversely affect the completion of the merger.International Coal Group is a leading producer of coal in Northern and Central Appalachia and the Illinois Basin. The Company has 13 active mining complexes, of which 12 are located in Northern and Central Appalachia, and one in Central Illinois. ICG's mining operations and reserves are strategically located to serve utility, metallurgical and industrial customers domestically and internationally.
Forward-Looking Statements
-- Statements in this press release that are not historical facts are
forward-looking statements within the 'safe harbor' provision of the
Private Securities Litigation Reform Act of 1995 and may involve a
number of risks and uncertainties. We have used the words
'anticipate,' 'believe,' 'could,' 'estimate,' 'expect,' 'intend,'
'may,' 'plan,' 'predict,' 'project' and similar terms and phrases,
including references to assumptions, to identify forward-looking
statements. These forward-looking statements are made based on
expectations and beliefs concerning future events affecting us and are
subject to various risks, uncertainties and factors relating to our
operations and business environment, all of which are difficult to
predict and many of which are beyond our control, that could cause our
actual results to differ materially from those matters expressed in or
implied by these forward-looking statements. The following factors are
among those that may cause actual results to differ materially from
our forward-looking statements: market demand for coal, electricity
and steel; availability of qualified workers; future economic or
capital market conditions; weather conditions or catastrophic
weather-related damage; our production capabilities; consummation of
financing, acquisition or disposition transactions and the effect
thereof on our business; a significant number of conversions of our
convertible senior notes prior to maturity; our plans and objectives
for future operations and expansion or consolidation; our
relationships with, and other conditions affecting, our customers;
availability and costs of key supplies or commodities, such as diesel
fuel, steel, explosives and tires; availability and costs of capital
equipment; prices of fuels which compete with or impact coal usage,
such as oil and natural gas; timing of reductions or increases in
customer coal inventories; long-term coal supply arrangements;
reductions and/or deferrals of purchases by major customers; risks in
or related to coal mining operations, including risks related to
third-party suppliers and carriers operating at our mines or
complexes; unexpected maintenance and equipment failure; adoption by
Appalachian states of EPA guidance regarding stringent water
quality-based limitations in CWA Section 402 wastewater discharge
permits and CWA Section 404 dredge and fill permits; environmental,
safety and other laws and regulations, including those directly
affecting our coal mining and production, and those affecting our
customers' coal usage; ability to obtain and maintain all necessary
governmental permits and authorizations; competition among coal and
other energy producers in the United States and internationally;
railroad, barge, trucking and other transportation availability,
performance and costs; employee benefits costs and labor relations
issues; replacement of our reserves; our assumptions concerning
economically recoverable coal reserve estimates; availability and
costs of credit, surety bonds and letters of credit; title defects or
loss of leasehold interests in our properties which could result in
unanticipated costs or inability to mine these properties; the impact
of the mine explosion at a competitor's mine on federal and state
authorities' decisions to enact laws and regulations that result in
more frequent mine inspections, stricter enforcement practices and
enhanced reporting requirements; future legislation and changes in
regulations or governmental policies or changes in interpretations or
enforcement thereof, including with respect to safety enhancements and
environmental initiatives relating to global warming and climate
change; impairment of the value of our long-lived and deferred tax
assets; our liquidity, including our ability to adhere to financial
covenants related to our borrowing arrangements; adequacy and
sufficiency of our internal controls; and legal and administrative
proceedings, settlements, investigations and claims, including those
related to citations and orders issued by regulatory authorities, and
the availability of related insurance coverage.
-- You should keep in mind that any forward-looking statement made by us
in this press release or elsewhere speaks only as of the date on which
the statements were made. See also the 'Risk Factors' in our 2010
Annual Report on Form 10-K and subsequent filings with the Securities
and Exchange Commission, all of which are currently available on our
website at http://www.intlcoal.com/. New risks and uncertainties arise from
time to time, and it is impossible for us to predict these events or
how they may affect us or our anticipated results. We have no duty to,
and do not intend to, update or revise the forward-looking statements
in this press release, except as may be required by law. In light of
these risks and uncertainties, you should keep in mind that any
forward-looking statement made in this press release might not occur.
International Coal Group, Inc.
CONTACT: Ross Mazza, Director of Financial Reporting and Investor
Relations, 1-304-760-2526
Web Site: http://www.intlcoal.com/