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Peabody Energy plan to be confirmed; emergence expected in early April
By Caroline Salls
Pittsburgh, March 17 – Peabody Energy Corp. said the judge presiding over its Chapter 11 process in U.S. Bankruptcy Court for the Eastern District of Missouri intends to confirm the company’s amended plan of reorganization after finalization of language regarding a settlement with the Department of Justice.
According to a company news release, the plan, which received support from creditors with an overall approval rate of 93% and unanimous acceptance by all 20 voting classes, spells out Peabody’s strategy to emerge from the Chapter 11 process with a strong balance sheet, well positioned to build a successful future for stakeholders.
Peabody said it expects to emerge from Chapter 11 in early April, less than one year after beginning the Chapter 11 process.
“Peabody has accomplished the goals set out nearly a year ago, against an industry backdrop that has strengthened,” president and chief executive officer Glenn Kellow said in the release.
“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 said it has reduced pre-filing debt levels by more than $5 billion, lowered fixed charges related to hedging and take-or-pay commitments, decreased royalty payments and sold non-core assets.
Upon emergence, the company’s existing equity will be extinguished with no value. Peabody expects its new equity to trade on the New York Stock Exchange.
Jones Day is serving as legal adviser to Peabody, Lazard Fréres & Co. LLC is serving as its investment banker and financial adviser, and FTI Consulting Inc. is serving as its restructuring adviser.
Peabody, a St. Louis-based coal producer, filed bankruptcy on April 13, 2016. The Chapter 11 case number is 16-42529.
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