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Peabody Energy moving towards emergence from Chapter 11

Published by
World Coal,

The judge presiding over Peabody Energy’s Chapter 11 process in US Bankruptcy Court for the Eastern District of Missouri has ruled that he intends to confirm the company's amended plan of reorganisation after finalisation of language regarding a settlement with the US Department of Justice.

The plan, which received overwhelming support from creditors with an overall approval rate of 93% and unanimous acceptance by all 20 voting classes, articulates Peabody's strategy to emerge from the Chapter 11 process with a strong balance sheet, well positioned to build a successful future for the company's stakeholders.  Peabody expects to emerge from Chapter 11 in early April 2017, less than one year after commencing the Chapter 11 process.

"Peabody has accomplished the goals set out nearly a year ago, against an industry backdrop that has strengthened.  Today's confirmation marks a major milestone in Peabody's journey and one of the final steps toward our successful emergence from Chapter 11," said Peabody President and CEO Glenn Kellow. "I would like to thank the Peabody team and all parties involved for their hard work. While there is no question that this has been a difficult process, we can all be proud of the broad consensus reached by so many stakeholders and the rapid way so many came together to agree to a path forward for the new Peabody.  Today's outcome further builds on our momentum as we move to emergence and position Peabody for long-term success."

In the past year, Peabody has reduced pre-filing debt levels by more than US$5 billion, lowered fixed charges related to hedging and take-or-pay commitments, decreased royalty payments and sold non-core assets.

Peabody's plan of reorganisation will become effective upon emergence, at which time the company's existing equity under the ticker symbol BTUUQ will be extinguished with no value.


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US coal news Peabody Energy news