Peabody Energy Secures Loans in Plan to Exit Bankruptcy

Researched by Industrial Info Resources (Sugar Land, Texas)--Having secured $1.5 billion in financing, U.S. coal producer Peabody Energy Corporation (NYSE:BTU) (St. Louis, Missouri) is progressing with its plan to emerge from bankruptcy in the second quarter of this year. Industrial Info is tracking 12 active Peabody Energy projects worth $656.64 million.

Peabody has secured loan commitments from Goldman Sachs Bank USA and JPMorgan Chase Bank N.A., along with affiliates of Credit Suisse AG and Macquirie Group Limited, according to court and Security and Exchange Commission (SEC) documents that were filed Thursday.

Peabody Energy filed for Chapter 11 bankruptcy protection in April. The filing came amid "unprecedented" factors affecting the global coal industry, the company said at the time, including a "dramatic drop in the price of metallurgical coal, weakness in the Chinese economy, overproduction of domestic shale gas and ongoing regulatory challenges." Peabody, which has mining operations in the U.S. and Australia, was looking at more than $10 billion in liabilities, according to multiple news accounts. For more information, see April 14, 2016, article - Peabody Energy Bankruptcy Filing a Sign of the Times for Coal Industry.

The Energy Information Administration recently reported that U.S. coal production in 2016 was expected to be the lowest level since 1978 as a result of market conditions ranging from low natural gas prices, warmer-than-normal temperatures during the 2015-2016 winter, and other factors. For more information, see January 10, 2016, article - EIA: U.S. Coal Production in 2016 Drops to Lowest Level in Nearly 40 Years. Environmental regulations on coal-fired power plants have also played a big role in the industry's plight.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.