"Additionally, Peabody has engaged in discussions with one of the first lien lenders under its senior secured credit agreement (the 'Credit Agreement') regarding, among other things, the Proposed Exchanges. Peabody indicated that its preference was to pursue liability management transactions such as the Proposed Exchanges, while the lender expressed its concern that Peabody was not pursuing an in-court restructuring. Peabody and the lender also discussed Peabody’s continued compliance with its covenants under the Credit Facility. If Peabody experiences or expects to experience a financial covenant breach or other default, it could request an amendment to, or waiver of, the covenant from its lenders. If Peabody is unable to obtain waivers from its lenders, Peabody would be in default under the Credit Agreement and certain of its other debt arrangements and the debt owed under such agreements could be accelerated."
Monday, February 29, 2016
Peabody Secured Creditor Wants Them to File BK $BTU
From an 8-K filing just released:
Looks like unsecured bond values are up a few points off their lows. Is that just small retail bidding up those bonds?
ReplyDeleteNo news from Bowie, the clock is ticking.
If you were Bowie, would you close the deal or wait and try to get a better deal in bankruptcy?
ReplyDeleteLooks like 2L secured notes are up on heavy volume the past few days. Something going on behind the scenes?
ReplyDeleteHow heavy volume?
ReplyDeleteSeem to be a lot of BTU bond oddlots trading. Maybe smaller investors doing the bond vs stock trade, and they're all paranoid that the company is going to survive so they're chasing the debt hedge price higher.
ReplyDeleteHearing that the 1L term loan is at 37. Don't think anything's going on behind the scenes...
ReplyDeletehttp://www.bloomberg.com/news/articles/2016-03-11/peabody-energy-bonds-shares-soar-to-highest-levels-in-weeks?cmpid=yhoo.headline
ReplyDeleteDoesn't matter. If the 1L is at 37 and there's a covenant breach next week, it'll be in bankruptcy in April.
ReplyDeleteSounds like BTU paid the coupon to the unsecured today.
ReplyDeleteCan anyone confirm?
How would anyone know yet if they paid the coupon?
ReplyDeleteMeanwhile, they still haven't filed a 10-K.
"The subject annual report, semi-annual report, transition report on Form 10-K, Form 20‑F, 11-K, Form N-SAR or Form N-CSR, or portion thereof, will be filed on or before the fifteenth calendar day following the prescribed due date; or the subject quarterly report or transition report on Form 10-Q, or portion thereof, will be filed on or before the fifth calendar day following the prescribed due date;"
ReplyDeletehttps://www.sec.gov/Archives/edgar/data/1064728/000106472816000143/a12b-25.htm
Is the 10-K due today or the 31st?
ReplyDeleteNo payment was made.
ReplyDeleteDo they use the grace period or just file tomorrow and get it over with?