Arch Coal said that it’s currently in talks with creditors to restructure its balance sheets and may have to file for Chapter 11 bankruptcy protection in the near future. The company has seen weakened coal sales recently and more power plants are switching to natural gas, reports the Associated Press.
Arch Coal’s bankruptcy warning may not come as a surprise to some. There have been a few other coal companies that have filed bankruptcy this year due to the struggling market. ACI failed to meet revenue expectations in its most recent quarter, but did report less losses than were expected from it, Associated Press notes.
“Our results reflect the actions we have taken to respond to the challenging market environment, including reducing costs and enhancing efficiency across the company,” Arch Coal John W. Eaves told MarketWatch. “Despite these efforts, however, the difficult conditions impacting the coal industry persist, and we expect they will continue throughout 2016.”
ACI shares were down 4% as of Noon Monday.
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