Arch Coal Inc.has filed a motion with a federal bankruptcy court requesting four more monthsto gain support for the approval of its restructuring plan, according to courtdocuments.
The company is asking for 120 more days of its exclusivefiling period "to ensure that their plan of reorganization best addressesthe interests of the debtors and their employees, creditors and estates."The company is asking to move the deadline to Sept. 7 from May 10.
The company, currently in Chapter 11 bankruptcy, filed theirreorganization planon May 5, which had details about employee benefits and debt restructuring. Thecompany's reorganization has also left questions about how the company willmeet its reclamation obligations. An Arch spokesperson told S&P GlobalMarket Intelligence that the company will be looking for ways to satisfy theirbonding requirements during the restructuring process.
In the most recent motion, Arch said that among other thingsit has "dedicated significant time and resources" to "negotiating,and obtaining court approval of a stipulation to provide financial assurancesto the State of Wyoming with respect to certain mine reclamation obligations."It also said it had spent time gaining approval for a $275 million debtorin-possession credit facility on appropriate terms and the sale its unit.
There has been some dispute between the company's senior andjunior lenders over the restructuring process, particularly since unsecuredcreditors will only receive shares of whatever is left over once lenders Archhas deemed are of higher priority are paid.
An Arch spokesperson said the company could not comment onthe motion.
"The debtors remain focused on reaching consensus on aplan of reorganization among their creditors while continuing to advance towardan expeditious confirmation and consummation of the plan," the Arch filingread. "The debtors' goal is, of course, to confirm a plan ofreorganization that will receive broad-based support from all of theirconstituencies. Additional work and progress is necessary in connection withthe continued negotiation of such a plan of reorganization."
The hearing for approval of the plan is currently scheduledfor June 9 in the U.S. Bankruptcy Court for the Eastern District of Missouri.