{"id":19892,"date":"2016-04-13T12:00:56","date_gmt":"2016-04-13T17:00:56","guid":{"rendered":"http:\/\/olduvai.ca\/?p=19892"},"modified":"2016-04-13T12:00:56","modified_gmt":"2016-04-13T17:00:56","slug":"end-of-an-era-peabody-declares-bankruptcy","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=19892","title":{"rendered":"End Of An Era: Peabody Declares Bankruptcy"},"content":{"rendered":"

End Of An Era: Peabody Declares Bankruptcy<\/a><\/h3>\n
In a sign of the times, the world\u2019s largest private sector coal miner just went bankrupt.<\/div>\n
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The St. Louis-based Peabody Energy Corp. warned a month ago that it was considering filing for Chapter 11 bankruptcy, and on Wednesday they\u00a0made it official<\/a>. Peabody\u2019s mines will continue to operate uninterrupted through the bankruptcy process. According to Peabody\u2019s court filing, it has obtained $800 million in debtor-in-possession financing facilities.<\/p>\n

\u201cThrough today\u2019s action, we will seek an in-court solution to Peabody\u2019s substantial debt burden amid a historically challenged industry backdrop. This process enables us to strengthen liquidity and reduce debt, build upon the significant operational achievements we\u2019ve made in recent years and lay the foundation for long-term stability and success in the future,\u201d the company said in a press release.<\/p>\n

Peabody has suffered a dramatic fall from grace, after\u00a0paying<\/a>\u00a0$5.1 billion to acquire major coal-producing assets in Australia in 2011. Since then, coal prices have collapsed, coal demand has ground to a halt, and Peabody\u2019s debt has piled up. In the U.S.,\u00a0cheap natural gas<\/a>\u00a0and environmental regulation has led to coal\u2019s downfall in the electric power sector. Abroad, a slowdown in China has hurt both thermal and metallurgical coal demand. China\u2019s demand for steel has slowed and it is undertaking a shift away from coal because of air pollution, leaving the world\u2019s top coal producers with a vastly smaller market than they had expected just a few years ago.<\/p>\n

U.S. coal exports have\u00a0declined<\/a>\u00a0in recent years, leaving Peabody \u2013 who oversees large mining operations in Wyoming \u2013 with too much coal and not enough demand. U.S. coal exports fell by 23 percent in 2015 compared to a year earlier.<\/p>\n

Peabody\u2019s bankruptcy is the latest in a string of bankruptcies from major coal producers, including Arch Coal, Alpha Natural Resources, Patriot Coal, and Walter Energy.<\/p>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

End Of An Era: Peabody Declares Bankruptcy In a sign of the times, the world\u2019s largest private sector coal miner just went bankrupt. The St. Louis-based Peabody Energy Corp. warned a month ago that it was considering filing for Chapter 11 bankruptcy, and on Wednesday they\u00a0made it official. Peabody\u2019s mines will continue to operate uninterrupted […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,3],"tags":[8023,12294,147,195,5332,1162],"class_list":["post-19892","post","type-post","status-publish","format-standard","hentry","category-economics","category-energy-2","tag-chapter-11-bankruptcy","tag-charles-kennedy","tag-coal","tag-debt","tag-oilprice-com","tag-peabody-energy"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/19892","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=19892"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/19892\/revisions"}],"predecessor-version":[{"id":19893,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/19892\/revisions\/19893"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=19892"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=19892"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=19892"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}