Newspaper article St Louis Post-Dispatch (MO)

Arch Coal Successfully Completes Financial Restructuring, Emerges from Chapter 11

Newspaper article St Louis Post-Dispatch (MO)

Arch Coal Successfully Completes Financial Restructuring, Emerges from Chapter 11

Article excerpt

Arch Coal said Wednesday that it hadcompleted its financial restructuring and emerged from Chapter 11 bankruptcy.

The Creve Coeur-based company, which like other mining companies was battered by the weakening demand for coal, filed for bankruptcy protection nearly eight months ago to reduce its debt.

Arch Coal says it now has more than $300 million of cash on its balance sheet and a debt level of just $363 million. Its total debt is 7 percent of what it was prior to restructuring.

The company also reported that it has third-party surety bonds in place to cover all of its reclamation bonding obligations. The matter of bonding has been a key issue amid bankruptcy proceedings for Arch and a fellow coal giant, St. Louis-based Peabody Energy, particularly in states that allowed the companies to reach self- bonding agreements over mine cleanup costs.

Instead of setting aside cash or other collateral up front, those arrangements enabled the companies to commit to bonding obligations based on their own valuation even though it would be largely meaningless in the event that they went bankrupt. …

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