Arch Coal Exits from Chapter 11 Bankruptcy

by San Antonio Attorney

Arch Coal announced that it has emerged from Chapter 11 bankruptcy after successfully completing its financial restructuring.

The company’s CEO, John Eaves, made the announcement on Oct. 5. He said they are happy with the turnout of the restructuring process, and are keen to proceed with their gripping plan to create value for the company. He also said he is confident that Arch can achieve a long-term success, because they have an incredible workforce, cost-efficient assets, a superb reserve base, no debt and an outstanding managing team.

According to a press release, the company said it is leaving bankruptcy with over $300 million of cash and $363 million of debt, which includes capital leases and new loan.

Arch’s overall debt is 7% of what it was before when it filed for bankruptcy, the company said.

Arch, one of the top coal producers in the United States, sought bankruptcy protection in January, along with other large coal companies, as the mining sector struggles to compete with cheap natural gas, a substantial slump in global markets, mined-out Appalachian easy-to-reach coal seams, and new regulations aimed at decreasing pollution and battling climate change.

In 2014, Arch ranked in West Virginia as the fourth biggest coal producer with an estimated 1,800 workers, based on the reports provided to the U.S. Mine Safety and Health Administration. The majority of the workers in West Virginia were employed at Taylor, Raleigh, Logan and Barbour counties.

Most of the company’s productions are generated from Wyoming’s Powder River Basin, as stated in the financial disclosures submitted to the U.S. Securities and Exchange Commission.

The mining company was first launched in 1997 by the merger of Ashland Coal and Arch Mineral, and stretched out extensively into western coal by 1998 when it bought the mining business of Atlantic Richfield.

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