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Arch Coal risks delisting from NYSE

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World Coal,

Arch Coal risks being delisted from the New York Stock Exchange (NYSE) for breaching listing standards after its market capitalisation fell below US$50 million for a consecutive 30-day period and because its stockholders’ enquiry was below US$50 million in its most recent filing with the Securities and Exchange Commission.

The company now has 10 business days to submit a letter to the NYSE confirming whether it will submit a plan that demonstrates its ability to regain compliance within 18 months. Upon submission of the letter, Arch would have 45 days to submit such as plan.

The plan would then be subject to review by the NYSE to determine its credibility. Acceptance would allow Arch to retain its listing on the NYSE; rejection would see Arch’s share’s suspended and delisting proceedings taken.

“Arch can provide no assurances that it will be able to satisfy any of the steps outlined above and maintain a listing of its shares,” the company said in a statement. Last month, Arch Coal said it was facing bankruptcy in the New Year after admitting that it would be unable to continue to service its debt in the current market.

“Arch will require a significant restructuring of its balance sheet to continue to operate as a going concern over the long term,” its Chief Financial Officer, John Drexler, said in its 3Q15 results statement, adding that it was in “active dialogue” with creditors.

The company announced a US$2 billion quarterly loss in 3Q15 on the back asset impairments and losses related to the Patriot Coal bankruptcy.

Arch Coal is one of the largest coal companies in the US, producing both metallurgical and thermal coal from assets in Appalachia, the Illinois Basin and the Powder River Basin. Along with many US coal producers, it has been hit by a steep decline in coal prices on the international market coupled with a switch from thermal coal to gas in the domestic power market.

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