NEW YORK (TheStreet) -- James River Coal Company (JRCC) is tumbling on Tuesday after notifying the SEC it would not be able to submit its 10-K annual report as scheduled and that it is unable to make interest payments on a portion of its convertible debt.
By late afternoon, shares had taken off 13.3% to 61 cents.
In its SEC notification, the company said its annual report would be delayed due to a strategic review process announced earlier in the month and as adjustments are made to its mining operations, which include the closure and idling of mines.
"Given the company's current liquidity needs and the uncertainty surrounding the outcome of our strategic review process, our auditors have communicated to us that if they were to deliver an audit opinion based on the current circumstances, their audit opinion would contain a going concern qualification," the company said.
James River Coal said due to these concerns it is uncertain when its 10-K form will be filed.
The Richmond, Virginia-based business also said it will not make the scheduled interest payment on its 3.125% convertible senior notes due 2018, of which $13.3 million remains outstanding. James River Call said it is entitled to a 30-day grace period before an event of default can be said to have occurred.
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TheStreet Ratings team rates JAMES RIVER COAL CO as a Sell with a ratings score of D. The team has this to say about their recommendation: