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Peabody moving ahead with its plan of reorganisation

Published by
World Coal,


Peabody Energy has provided an update regarding additional support from stakeholders to its plan of reorganisation.

Additional eligible holders of approximately 11.8% of the outstanding principal amount of the company's senior secured second lien notes and approximately 8% of the outstanding principal amount of the company's senior unsecured notes that had been granted additional time to join as Phase Two parties by order of the Bankruptcy Court became parties to the Plan Support Agreement (PSA) relating to the company's plan of reorganisation.

 

These additional eligible holders also joined the Backstop Commitment Agreement (BCA) relating to the proposed US$750 million common stock rights offering and the Private Placement Agreement (PPA) relating to the proposed private placement of $750 million of mandatorily convertible preferred stock as Phase Two parties.

When combined with the holdings of the other creditors party to the PSA, BCA and PPA through 6 January 2017, holders of approximately 94.9% of the outstanding principal amount of the company's senior secured second lien notes and approximately 80.3% of the outstanding principal amount of the company's senior unsecured notes are parties to each of the PSA, BCA and PPA. Holders of approximately 40.7% of the company's outstanding first lien debt and approximately 32.3% of the outstanding principal amount of the company's unsecured convertible junior subordinated debentures are parties to the PSA.

The deadline for eligible holders to sign joinders to the BCA and PPA is 25 January 2017.  Holders of claims may sign a joinder to the PSA up until the time the plan of reorganisation is confirmed.

The plan of reorganisation remains subject to confirmation by the court, and the related disclosure statement is subject to approval by the court.

 

Read the article online at: https://www.worldcoal.com/coal/10012017/peabody-moving-ahead-with-its-plan-of-reorganisation/


 

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