trending Market Intelligence /marketintelligence/en/news-insights/trending/YZN-dUSSasbH74JVhqCGJg2 content esgSubNav
In This List

Peabody defends bankruptcy reorganization plan

Blog

Japan M&A By the Numbers: Q4 2023

Video

See the Big Picture: Energy Transition in 2024

Podcast

IR in Focus | Episode 10: Capital Markets Outlook

Blog

Infographic: The Big Picture 2024 – Energy Transition Outlook


Peabody defends bankruptcy reorganization plan

Peabody Energy Corp. disputed multiple objections of investors and government agencies in a defense of its bankruptcy reorganization plan filed Jan. 24.

In the filing, Peabody insisted that its plan is the only one that provides a certain and timely exit from the bankruptcy case. Peabody also pointed out that it enjoys the support of the overwhelming majority of holders in principal amount.

Peabody said the reorganization plan accomplishes four goals: preserving liquidity in "an uncertain and volatile coal industry"; "right sizing" its debt burden to "survive both the peaks and troughs of the coal industry cycles"; maximizing value for creditors; and achieving the broadest possible consensus for the plan. A number of alternative plans presented to Peabody, the company wrote, fail to achieve those goals.

"This lack of viable alternatives renders the objecting parties' complaints with respect to certain of the plan agreements' terms meritless," the filing states. "While any participant in a financial transaction would always like better terms, no such possibility currently exists for the debtors."