Thread by @AFLCIO

Thank you @SenWarren @SenSherrodBrown @SenSanders @SenatorBaldwin for bringing attention to this issue. What does Apollo Global Management have to do with the strike by 900 @mineworkers in Alabama? It’s a complicated story, but here goes…

1/15

In 2015, the price of coal was in the dumps. Mining company Walter Energy had sustained quarter after quarter of losses and was quickly burning through its available cash and trying to postpone some of its cash interest payments. Something had to give.

2/15

So, in March 2015 Walter Energy entered into negotiations with a committee of its largest senior lenders, and several months later filed for bankruptcy in the Northern District of Alabama.

3/15

Meanwhile, @ApolloGlobal and several other distressed debt investors had acquired some of that senior debt, and in September 2015, they formed a company—Warrior Met—to make a credit bid for two of Walter’s most valuable mines.

4/15

A “credit bid” means they proposed to trade their claims against the bankrupt Walter for the receipt of the AL mines. Apollo was the largest Warrior Met shareholder w 30% of shares. The other shareholders were Blackstone’s GSO (19.4%), KKR (12.1%), Franklin Funds (13.8%).

5/15

The credit bid was conditioned on the bankruptcy judge entering an order rejecting Walter’s collective bargaining agreement with the #UMWA and the @Steelworkers.

6/15

In Dec '15, the judge entered an order that allowed Walter Energy to reject the company’s collective bargaining agreements, implement final labor proposals & terminate retiree benefits. Warrior Met was the only bidder so in Mar '16 they assumed ownership of the 2 AL mines.

7/15

Meanwhile, the judge allowed Walter Energy to stop paying into the miner's pension benefits.

8/15

The @MineWorkers estimates that through cuts in pay, overtime, vacation, safety, health care, and other benefits, Warrior Met workers saved the company more than $1 billion during and after its bankruptcy.

9/15

They saved the company, then got the shaft. Their lost benefits have not been restored, despite the company’s return to profitability.

10/15

In April 2017, Apollo and the others took Warrior Met public. Apollo named two of its partners to the company’s Board of Directors. Before the IPO, Warrior Met paid its private equity owners “a special cash distribution of $190 million.”

11/15

7 months later, the board issued bonds & used proceeds to supersize another massive dividend. This time Apollo & other shareholders received $600M.

Apollo has since sold its shares—but is still involved w Warrior Met—Sr Partner Gareth Turner remains a member of the Board. 12/15

And another board member, Alan Schumacher, has past ties to Apollo, having served as Apollo’s representative on two other boards in the past.

More than 900 Warrior Met workers have been on strike for 7 months. They want a fair contract—a restoration of benefits.

13/15

Apollo & other PE companies who used the bankruptcy process to get the AL mines w/o assuming the company’s pension & medical obligations to workers bear much responsibility for the strike. 14/15

Apollo can still use its influence w the Warrior Met board to help resolve the strike. 15/15

Read more: warren.senate.gov/newsroom/press…