Wow, they filed a couple days earlier than I figured they would.
On April 13, 2016, Peabody and a majority of Peabody’s wholly owned domestic subsidiaries, as well as one international subsidiary in Gibraltar (the “Filing Subsidiaries” and, together with Peabody, the “Debtors”), filed voluntary petitions for reorganization (collectively, the “Bankruptcy Petitions”) under chapter 11 of Title 11 of the U.S. Code (the “Bankruptcy Code”) in the United States Bankruptcy Court for the Eastern District of Missouri (the “Court”), for which joint administration has been sought (the “Chapter 11 Cases”), Case No. 16-42529. Each Debtor will continue to operate its business as a “debtor in possession” under the jurisdiction of the Court and in accordance with the applicable provisions of the Bankruptcy Code and the orders of the Court.We first put a spotlight on Peabody last summer.
The Company expects to enter into a $500 million debtor-in-possession term loan facility, $100 million letter of credit facility and a $200 million bonding accommodation facility with certain lenders on terms and conditions set forth in the DIP term sheet and DIP credit agreement filed with the Court (the “DIP Financing”). Upon approval by the Court and the satisfaction of the conditions set forth in the DIP term sheet and DIP credit agreement, the DIP Financing and the AR Program, along with the Company’s existing liquidity and cash generated from ongoing operations, will be used to support the business during the restructuring process.