TheU.S. Bankruptcy Court for the Eastern District of Missouri has approvedArch Coal Inc.'sdisclosure statement, clearing the way for the company to seek final clearancefor its bankruptcy reorganization plan.
"Withthe court's approval of our disclosure statement, a consensual proposed plan ofreorganization in place and a plan confirmation hearing scheduled, Arch hasestablished a clear path for emerging from this restructuring process as astrong, well-positioned competitor," Arch Chairman and CEO John Eaves saidin a July 8 news release.
Theapproval comes roughly six months after Arch initially filed for Chapter 11protection and one day after coal producer Alpha Natural Resources Inc. that its reorganization planhad been approved.
Archreiterated its intention to continue operations without pause during itsrestructuring. "As we move forward, we will continue oursharp focus on operational excellence while maintaining an unwaveringcommitment to mine safety and environmental stewardship," the company said.
Theapproval of Arch's disclosure statement comes after the company a global settlement toresolve disputes over its reorganization plan with senior secured lenders andthe committee of unsecured creditors.
Archwill now begin soliciting votes for the plan from eligible stakeholders, with avoting deadline of Aug. 31. A court hearing is scheduled for Sept. 13 toconsider Arch's reorganization plan.