US coal company, Arch Coal, has completed its financial restructuring and emerged from Chapter 11 bankruptcy protection. The company will now trade on the New York Stock Exchange under the ticker symbol, ARCH.
“Today marks the beginning of a new era for Arch Coal,” said John Eaves, Arch’s CEO, pointing to the “resurgent metallurgical coal market” as reason to be positive. Arch Coal is the leading producer of metallurgical coal in the US, as well as the country’s second largest thermal coal producer.
The company was looking forward to a “similar strengthening” in thermal coal markets in the months ahead, Eaves continued. “With our enhanced financial foundation and top-tier assets, we believe we are exceptionally well-positioned to capitalise on both [metallurgical and thermal coal market recovery].”
Arch leaves bankruptcy protection with more than US$300 million of cash on its balance sheet and a debt level of just US$363 million – or just 7% of its total pre-bankruptcy debt load. Cash requirements are expected to be modest with projected CAPEX of US£55 million in 2017 and debt payments of US$33 million.
The company also had third-party surety bonds in place covering its reclamation bonding requirements.
“We are extremely pleased with what we have accomplished during our highly expeditious restructuring process and are eager to move forward with our compelling plan for value creation,” concluded Eaves.
Read the article online at: https://www.worldcoal.com/coal/05102016/arch-coal-emerges-from-chapter-11/