Peabody Energy Take Measures to Circumvent Bankruptcy

by San Antonio Attorney

Peabody Energy, based in St.  Louis, is currently in talks with creditors and considers selling assets.  The company, struggling with a huge debt and an industry downturn, is trying its best to stay afloat.

Peabody has recently reported a whole year loss of more than $2 billion, as compared to less than half of the amount lost in 2014.

Glenn Kellow, Chief Executive Officer of Peabody, has stated that the company has tried a lot of ways to improve its financial situation.  These moves include selling their operations in New Mexico and Colorado.  However, these solutions were not enough to save Peabody’s sinking ship.

Kellow told the analysts last Thursday via a quarterly conference call that there is no denying in the fact that the industry backdrop is a little difficult.

Kellow added that some of their peers or fellow companies have already filed for bankruptcy last year.  Peabody, with its impending financial problems is not immune to these problems as manifested in the small earnings, cash flows and pricing of equipment.

Peabody is preparing itself for another grueling year as the coal industry continues to dwindle with its decreased demand.  This malady is due to cheap natural gas prices.

Peabody can potentially reach $1.7 billion in credit line in a few days.  This move can be one of remedies done to build a contingency fund in case of a bankruptcy filing or a lender’s solution to cut off any additional credit.

Peabody disclosed their company information in a recent filing with the U.S.  Securities and Exchange Commission as it prepares a yearend financial report.

When Peabody’s fellow coal company, Arch Coal, did not secure a deal with the debt-holders, this has been noted as the main cause why they forced to file for bankruptcy.

Peabody revealed the details in a filing with the U.S.  Securities and Exchange Commission as it prepares announce year-end financial results.

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