Peabody Energy has announced that the US Bankruptcy Court for the Eastern District of Missouri has approved the company's disclosure statement, enabling the company to solicit its creditors to vote on the proposed plan of reorganisation. Peabody also received court approval for its plan support agreement, private placement agreement and backstop commitment agreement.
With this court approval, Peabody will begin soliciting votes for its plan of reorganisation ahead of a voting deadline of 3 March, 2017 at 5 pm CST and a hearing to consider confirmation of the plan on 16 March, 2017 at 10 am CDT.
The approval of the plan support agreement and related agreements reflect a broad consensus for the company's Chapter 11 plan among key representatives of its largest creditor constituencies, paving the way towards confirmation of the plan of reorganisation. In addition, the new equity investments contemplated by the plan (represented by the fully backstopped US$750 million rights offering and US$750 million private placement of mandatorily convertible preferred stock) and committed exit debt financing are expected to provide the funding for Peabody's exit from Chapter 11.
"Today's court approval of our disclosure statement is another important step forward, allowing our creditors to vote on our plan of reorganisation and bringing Peabody ever closer to emergence," said Peabody Energy President and Chief Executive Officer Glenn Kellow. "We are encouraged by the broad support to date, and look forward to continuing to build momentum. We believe the plan maximises the value of the enterprise and paves the way for a sustainable future for Peabody."
Peabody will begin the process of soliciting votes for the Plan from eligible stakeholders immediately. The court has set a voting deadline of 3 March, 2017 at 5 pm. CST for eligible stakeholders. The plan is subject to confirmation by the bankruptcy court. This release is not intended as a solicitation for a vote on the plan.