https://www.miningweekly.com

US Bankruptcy Court approves Arch Coal’s turnaround plan

US Bankruptcy Court approves Arch Coal’s turnaround plan

Photo by Bloomberg

14th September 2016

By: Henry Lazenby

Creamer Media Deputy Editor: North America

  

Font size: - +

VANCOUVER (miningweekly.com) – Bankrupt US coal producer Arch Coal has won approval from the Eastern District of Missouri's US Bankruptcy Court for its proposed amended plan of reorganisation, which would see the company eliminate more than $4.7-billion in debt from Arch's balance sheet.

This clears the path for Arch to emerge from bankruptcy early in October, the company advised on Tuesday.

St Louis, Missouri-based Arch filed for Chapter 11 bankruptcy protection in January, after failing to restructure with bondholders out of court. Arch’s highly leveraged capital structure, comprising more than $5-billion in outstanding indebtedness and about $360-million in annual debt service, could be sustained in the depressed coal market at the time.

"We will emerge as a strong, well-positioned natural resource company with a compelling plan for value creation,” stated CEO John Eaves.

Arch said that its senior lenders overwhelmingly supported the restructuring plan.

NYSE-listed Arch, which produces coal for the global steel and power generation industries through its network of mining complexes straddling every significant US coal basin, especially the lower-cost Powder River basin, in Wyoming, said that it remained confident that it had established a “solid foundation” for long-term success, built on its strong metallurgical and thermal franchises.

Edited by Samantha Herbst
Creamer Media Deputy Editor

Comments

Showroom

Booyco Electronics
Booyco Electronics

Booyco Electronics, South African pioneer of Proximity Detection Systems, offers safety solutions for underground and surface mining, quarrying,...

VISIT SHOWROOM 
WearCheck
WearCheck

Leading condition monitoring specialists, WearCheck, help boost machinery lifespan and reduce catastrophic component failure through the scientific...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.221 0.258s - 88pq - 2rq
1:
1: United States
Subscribe Now
2: United States
2: