Peabody Files Bankruptcy Exit Plan

by San Antonio Attorney

Peabody Energy has filed its reorganization plan, putting it on track to come out from bankruptcy.

Routt County Commissioner Doug Monger is encouraged by the news and looks forward to be of help to the company through a partnership.

Peabody, which owns the Twentymile Mine located in Routt County, has aimed to exit from bankruptcy around April 2017.

According to Monger, he thought the bankruptcy did not affect the local business, and he was grateful the good-paying jobs at the mine remain.

All the commissioners are particularly supportive of the coal mine jobs that pay $80,000 to $90,000.

But the bankruptcy caused a problem locally.  The firm was delayed in paying almost $1.8 million in property taxes.  To get the funding, South Routt School District had borrowed from the state until the firm settled its taxes.

Based on news reports, the bankruptcy exit plan includes a new, stable capital structure that substantially minimizes the pre-filing liability levels by over $5 billion, reduces fixed charges and recapitalizes the firm, and other strategies.

The reorganization plan also expects that Peabody is going to emerge with large liquidity to meet long- and near-term needs.

Financially distressed companies or individuals usually file under to retain their property and assets while they pay back their creditors or reduce their debts.  A San Antonio Lawyers can put in plain words how it actually works.

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