There is “significant uncertainty” over Peabody Australia’s ability to continue as a going concerns, according to its accountants, after the company lost AUS$2.7 billion in the year to December 2015.
The loss included an AUS$1.8 billion impairment change. In comparison, the company made an AUS$1.27 billion loss a year before.
Although the company’s directors said that they believed the company would be able to honour its debts, the groups auditors, EY, said that there was now “"significant uncertainty whether the company and/or the consolidated entity will continue as a going concern".
Peabody Australia’s parent company is currently in Chapter 11 bankruptcy in the US – but none of Peabody Australia’s operations are included in that process.
Peabody employees around 2300 people at its mines in New South Wales and Queensland.
Read the article online at: https://www.worldcoal.com/coal/03062016/peabody-australia-losses-reach-aus2-7-billion-2016-895/