Peabody Energy Corp, the largest US coal producer, said it may have to seek bankruptcy protection as it did not have enough funds to continue operations. Falling demand for coal, tough environmental controls and cheaper natural gas have pushed several big coal miners, including industry No. 2 Arch Coal Inc, into bankruptcy in the past year.
Peabody, which flagged the bankruptcy risk under the "risk factors" section of a regulatory filing on Wednesday, said it decided to skip a $71.1 million interest payment on its senior notes, kicking off a 30-day grace period.
The company, which had a total debt of $6.3 billion at the end of 2015, said there was "substantial doubt" about its ability to continue as a going concern.
Peabody's shares have crashed from their record high of more than $1,300 in 2008 to $4.01 as of Tuesday's close, reflecting the downturn in the coal market over the past few years.
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