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Hamilton, Bermuda - Sept. 29, 2015 - PRNewswire
NewLead Holdings Ltd. (OTC: NEWL) ("NewLead" or the "Company") announced today that the Company did not complete the agreement to supply and deliver 1.48 million tons of steam coal to a third party that was expected to generate $148.0 million of revenue, as such agreement was previously announced on February 26, 2013.
Specifically, as previously disclosed in the Annual Report on Form 20-F for the year ended December 31, 2012, filed with the Securities and Exchange Commission ("SEC") on August 30, 2013, under "Item 4. Information on the Company, B. Business Overview, Coal Sale Purchase Agreements" on page 42 and under "Item 5. Operating and Financial Review and Prospects" on page 80 and under "Notes on the Consolidated Financial Statements" page F-60, New Lead JMEG LLC, the party under the supply contract and an affiliate of the Company, received notice of termination on the coal supply contract.
More precisely, as disclosed in the aforementioned 20-F, the Company stated "In January and February 2013, New Lead JMEG LLC ("New Lead JMEG") also entered into three Sale Purchase Agreements (the February 26, 2013 announcement refers to one of those three agreements) with two third parties to supply approximately $806.1 million of thermal coal, which were subject to a variation of 5-10% in agreed tonnage supply, located in Kentucky, USA. In May and July 2013, New Lead JMEG LLC received notices of termination on the two of those Sale Purchase Agreements (the February 26, 2013 announcement refers to one of those two agreements) to supply approximately $245.1 million of thermal coal to one of the third parties due to ongoing defaults by New Lead JMEG LLC under the agreements."
Furthermore, on March 12, 2014, NewLead, New Lead JMEG and the third party reached a settlement agreement pursuant to which the third party agreed to receive shares of the Company's common stock having a value at such time equal to the settlement amount of approximately US $704,000 in full and final satisfaction of the obligations under the coal supply contract. The Company issued the shares of common stock to the third party on March 26, 2014.
The projected revenue, though based on the signed contract, was at the very high end of the performance of the contact.
NewLead Holdings Ltd. Announces Updates on Five Mile and Elk Valley Mines and Coal Supply Contracts
Hamilton, Bermuda - Sept. 29, 2015 - PRNewswire
NewLead Holdings Ltd. (OTC: NEWL) ("NewLead" or the "Company") announced today that the Company did not complete the agreement to acquire the ownership and leasehold interests of the Elk Valley mine and that it has not yet completed the acquisition of the title and excavation rights of the Five Mile mine, all as previously announced on January 17, 2014. In addition, the Company did not complete the two coal supply contracts for the sale of coal to third parties, also as described in such announcement.
With respect to the Elk Valley mine, as previously disclosed in the Annual Report on Form 20-F for the year ended December 31, 2013, filed with the Securities and Exchange Commission ("SEC") on May 9, 2014, under "Item 4. Information on the Company, A. History and Development of the Company" on page 41 and "B. Business Overview, Our Mining Operations - Coal and Natural Gas Reserve Acquisitions" on page 62, as well as under "Notes to the Consolidated Financial Statements, 5. Acquisitions" on pages F-26 and F-27, the agreement to acquire the Tennessee Property (the Elk Valley mine) terminated and is of no further force or effect.
More precisely, as disclosed in the aforementioned 20-F, the Company stated "we previously entered into an agreement to acquire ownership and leasehold interests, including rights, title, permits and leases to coal mines, to the Tennessee Property. However, as we were not able to obtain the necessary financing to satisfy its payment obligations under the purchase agreement for the Tennessee Property, we entered into an agreement, pursuant to which it was to be permitted to use the property through a one-year lease agreement. On June 7, 2013, due to a default under the lease agreement, we assigned all rights under the permits, mining contracts and other mining assets relating to the Tennessee Property back to the seller. As a result of the default, our agreement to acquire the Tennessee Property terminated and is of no further force or effect. We may be liable to the seller for damages or any amounts owed under the agreements; however, as of the date hereof, the seller has not initiated any actions against us based on such defaults."
Furthermore, with respect to the Five Mile mine, as previously disclosed in the Annual Report on Form 20-F for the year ended December 31, 2014, filed with the SEC on May 14, 2015, under "Item 3. Key Information, Recent Developments, Coal Business" on page 2 and under "Item 4. Information on the Company, B. Business Overview, Coal Business" on page 62 and "Item 5. Operating and Financial Review and Prospects, Recent Developments" on page 81 and under "Notes to the Consolidated Financial Statements" pages F-28 and F-29, as of the date of such Annual Report and continuing through today, although the purchase price for the Five Mile mine assets (including mineral rights, surface rights and mining permits and the title of land ownership of the Five Mile mine including the Andy Terminal Railroad) has been fully paid, the transfer of the Five Mile mine assets has yet to occur. Additionally, according to the Kentucky State mining regulators, upon the successful transfer of the Five Mile mine, it is a precondition to the transfer of the permits for the replacement of the reclamation bonds for the transfer of the Five Mile mine assets.
Furthermore, the Company did not complete the two coal supply contracts for the sale of coal to third parties that was expected to generate $873.5 million of revenue. The Company was unable to complete such contracts due to the collapse of coal prices, as well as adverse coal market conditions, and also as a result that the coal was to be supplied not only from any coal produced from the mines the Company anticipated acquiring but also from third party mines and then supplied to the contracting parties.. The projected revenue, though based on signed contracts, was at the very high end of the performance of the contacts.
Specifically, as previously disclosed in the Annual Report on Form 20-F for the year ended December 31, 2012, filed with the SEC on August 30, 2013, under "Item 4. Information on the Company, B. Business Overview, Coal Sale Purchase Agreements" on page 42 and under "Item 5. Operating and Financial Review and Prospects" on page 80 and under "Notes on the Consolidated Financial Statements" page F-60, New Lead JMEG LLC, the party under the supply contract and an affiliate of the Company, received notice of termination on one of the two coal supply contracts and the second coal supply contract orally terminated by both parties due to ongoing defaults by New Lead JMEG LLC under such agreement.
More precisely, as disclosed in the aforementioned 20-F, the Company stated "In January and February 2013, New Lead JMEG LLC also entered into three Sale Purchase Agreements (the January 17, 2013 announcement refers to two of those three agreements) with two third parties to supply approximately $806.1 million of thermal coal, which were subject to a variation of 5-10% in agreed tonnage supply, located in Kentucky, USA. In May and July 2013, New Lead JMEG LLC received notices of termination on the two of those Sale Purchase Agreements to supply approximately $245.1 million of thermal coal to one of the third parties due to ongoing defaults by New Lead JMEG LLC under the agreements. The third Sale Purchase Agreement was orally terminated by both parties due to ongoing defaults by New Lead JMEG LLC under the agreement. As of August 30, 2013, the buyers of all three Sale Purchase Agreements have not initiated any actions against New Lead JMEG LLC based upon such defaults."
In addition, with respect to the acquisition of the local coal mining management company, as previously announced on January 17, 2013, the Company stated such acquisition "is subject to a number of terms and conditions" which included the completion of the acquisition of the Five Mile mine, with respect to which the Company stated "there is no assurance it will be consummated."
Today, NewLead's coal business, consists of a coal preparation plant, which has entered into various coal processing agreements. However, there can be no assurance that we will be able to effectively manage those operations or expand those limited operations, or that any such operations will be successful now or in the future.
NewLead Holdings Ltd. Announces Updates to Previously Disclosed Coal Supply Contract
Hamilton, Bermuda - Sept. 28, 2015 - PRNewswire
NewLead Holdings Ltd. (OTC: NEWL) ("NewLead" or the "Company") announced today that the Company did not complete the coal supply agreement requiring the Company to supply 720,000 metric tons of thermal coal to a third party buyer, as such agreement was previously announced on January 24, 2013. The Company terminated the supply contract and did not complete the terms as a result of a decline in coal prices and unfavorable market conditions.
The supply agreement was subject to satisfactory completion of a trial shipment that was expected to be executed in the first quarter of 2013, which trial shipment was not completed due to the material collapse of coal prices and adverse market conditions in the coal industry at that time.
As referenced in the "Risks Relating to Our Coal Business" in the Annual Reports on Form 20-F for the years ended December 31, 2012, 2013 and 2014, the Company stated "Coal prices are subject to change and a substantial or extended decline in prices could materially and adversely affect our business, results of operations and financial position, the market prices for coal may be volatile and may depend upon factors beyond our control. Our profitability may be adversely affected if we are unable to sell any of the coal we have sourced under our supply arrangements at favorable prices or at all."
For further information, please visit the Company's SEC filings at the "Investor Relations" section under "SEC Filings", http://www.newleadholdings.com/sec.html. The Annual Reports of the Company on Form 20-F can be found at the 'Investor Relations" section under "Annual Reports, "http://www.newleadholdings.com/annual-reports.html".
About NewLead Holdings Ltd.
NewLead Holdings Ltd. is an international vertically integrated shipping, logistics and commodity company providing ideal solutions for seaborne transportation of dry bulk commodities and petroleum products through owned and managed vessels. NewLead controls a fleet of ten vessels, including five dry bulk and five tanker vessels and manages one third party tanker vessel. NewLead is a Securities and Exchange Commission ("SEC") reporting Foreign Private Issuer in compliance with applicable SEC rules and regulations and current in its SEC reporting, utilizing U.S. Generally Accepted Accounting Principles' financial reporting standards. NewLead's common shares are traded under the symbol "NEWL" on the Over-the-Counter market. To learn more about NewLead Holdings Ltd., please visit NewLead's renewed website at www.newleadholdings.com.
NewLead Holdings Ltd. press release