Thursday, July 29, 2010
Massey Sets Aside Large Amount Of Cash
WEST VIRGINIA....
Massey Energy has set aside cash "in the upper range" to cover potential lawsuit costs and possible government fines related to the Upper Big Branch Mine disaster. Massey has put the potential costs of the April 5th explosion at nearly $129 million, but David Khani, an energy analyst with the investment bank FBR Capital Markets, is wondering if the disaster might end up costing Massey $150 million or $200 million. Khani told CEO Don Blankenship that, if the $129 million number ends up being a much bigger number, a lot of the investors may have fears about owning Massey stock. Blankenship assured Khani that Massey experts have worked hard to come up with an accurate number that accounts for all possibilities, and the company has put in numbers that are at the upper range of anything Massey has ever experienced. Massey has offered the miners' families settlements ranging from $3 million to $5 million to resolve potential lawsuits over the Upper Big Branch deaths.
# posted by Homer Owens @ 3:12 PM 
