announced April14 that the U.S. Bankruptcy Court for the Eastern District of Missouri approvedits first-day motions, allowing the coal company to continue operations in the ordinarycourse of business while in the midst of a Chapter11 process.
Accordingto the company, court approval includes the $800 million in Debtor-in-Possessionfinancing facilities by a lender group led by Citigroup. The facilities include$200 million of a $500 million term loan which is now available to the company,a $200 million bonding accommodation facility and a cash-collateralized $100 millionletter of credit facility.
Peabodyalso received authorization to pay employees in the usual manner and to retain theirhealth care and other benefits programs without interruption, and to continue usingexisting cash management systems and maintain existing bank accounts.
"Weare pleased with this first positive step forward in our Chapter 11 process, andthe support we have received since our filing from our employees, customers, suppliersand many other stakeholders has been highly encouraging," said Peabody Presidentand CEO Glenn Kellow in a company release.