Peabody Energy Corporation (BTU) and the majority of its U.S. entities have filed for Chapter 11 bankruptcy protection.
Peabody Energy is planning to continue normal operations as it works to reduce debt, fixed charges and improve operating cash flow. The company hopes that these changes will result in long-term success.
As part of its effort to come back from the Chapter 11 bankruptcy protection, Peabody Energy has secured an $800 million loan from lenders with the help of Citigroup Inc (C). Trading of the company’s shares on the NYSE will also be suspended.
Peabody Energy said that the bankruptcy filing doesn’t affect its Australia businesses, which saw earnings increase more than last year despite lower coal prices. It’s also expecting global coal demand to stabilize.
BTU shares were down slightly as of Wednesday morning.
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