39473
Top Private Coal Miner Bankrupt
World Economy

Top Private Coal Miner Bankrupt

Peabody Energy Corp, the world's largest privately owned coal producer, filed for US bankruptcy protection on Wednesday in the wake of a sharp fall in coal prices that left it unable to service a recent debt-fueled expansion into Australia.
The company listed both assets and liabilities in the range of $10 billion to $50 billion, according to a court filing, Reuters reported.
Peabody's Chapter 11 bankruptcy filing ranks among the largest in the commodities sector since energy and metals prices began to fall in the middle of 2014 as once fast-growing markets such as China and Brazil began to slow.
"This was a difficult decision, but it is the right path forward for Peabody," Chief Executive Officer Glenn Kellow said in a statement. "This process enables us to strengthen liquidity and reduce debt, build upon the significant operational achievements we've made in recent years and lay the foundation for long-term stability and success in the future."
Peabody has secured $800 million in debtor-in-possession financing from both secured and unsecured creditors, including a $500 million term loan, $200 million bonding accommodation facility and a letter of credit worth $100 million, the company said in release.
Peabody's debt troubles date back to its $5.1 billion leveraged buyout of Australia's Macarthur in 2011, a coveted asset at the time meant to position it as a supplier of metallurgical coal for Asian steel mills.
But as demand for metallurgical coal fell, particularly in China, Peabody's financial woes intensified. It made a $700 million write-down on its Australian metallurgical coal assets last year.
Producers accounting for about 45% of US coal output have filed for bankruptcy in the current industry downturn, based on 2014 government figures.

Short URL : http://goo.gl/UXt6j5
  1. http://goo.gl/DBlDdf
  • http://goo.gl/2TT4WS
  • http://goo.gl/s80oQ4
  • http://goo.gl/hpVhnt
  • http://goo.gl/q6Fmae

You can also read ...

Thai CB Retains Key Rate
Thailand’s central bank on Wednesday left its key interest...
China and India continue to remain the most promising investment destinations in 2017.
Developing Asia is expected to witness a 15% increase in...
Brazil Raises Deficit Ceiling
Brazil is raising its deficit ceiling for this year and 2018...
Elon Musk, Kevin Plank, Bob Iger, Richard Trumka, Kenneth Carleton Frazier
The honeymoon is definitely over. When US President Donald...
Riksbank is under pressure to tighten its ultra-loose monetary policy.
Underlying inflation topped the Swedish central bank’s target...
At 310% GDP, China’s banking sector is above the advanced economy average and nearly three times  the emerging market average.
China's economy is looking good enough that the International...
Crude oil accounts for 96% of exports and around half of state revenue.
Venezuela might look bad right now amid protests, scarce food...
US Household Debt at $12.8 Trillion
US household debt reached a new record in the second quarter,...

Trending

Googleplus