Anker Coal Group, Inc.

Anker is a producer of coal used principally for electricity generation and, to a lesser extent, for steel production. The company owns substantial coal reserves and operates a diverse portfolio of eight non-union deep and surface mines located in West Virginia and Maryland. Due to operating problems and a revised operating strategy, the company experienced severe liquidity problems under its outstanding public senior notes and senior secured revolving credit financing.

Gordian Group was engaged in 1999 to advise the company with its assessment of the financial alternatives available and to assist the company in negotiating the restructuring of all or a portion of its existing indebtedness and obtaining supplemental credit facilities. Over the next several months, Gordian Group reviewed the company operating plan, developed views and financial alternatives for presentation to the Board of Directors and were authorized to engage in discussions with representatives of a group of noteholders and the company's senior secured lenders. These negotiations culminated in a private exchange offer with a group of noteholders, the private placement of additional notes and enhanced availability from the senior secured lenders. This increased liquidity allowed management the capability to implement its new operating plan and strategy.