Wednesday, April 13, 2016

Peabody Energy Files For Bankruptcy $BTU

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.

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.
We first put a spotlight on Peabody last summer.


whydibuy said...

Is that stock market crash still imminent?? Looks green on the year to me.
Oil is looking stronger day by day as well.
Fascinated by a bk sideshow within a big bull market and growing economy. What a waste of time to focus on some micro event rather than enjoy a nicely rising, wealth generating market. Shame some are so bearish that they wallow in their gloom and indulge some morbid fascination with a bk company and project that into the market in general. Silly.

Anonymous said...

whydibuy definitely comes out when his portfolio is hurting. I wish we knew what's in it. A lot of energy stocks? Maybe some tech momo that's been taken out back after earnings?

whydibuy said...

The perma bear views of this blog and the silly doomers at Zerobrains amuses me. I just checked in to see how the end of the world was progressing as CP said . There appears to be a miscalculation somewhere.

eah said...


Well, I certainly remember last August and this year in January -- my memory is not that bad -- re the market, things can turn very quickly. Doesn't it appear there's something just a bit artificial about market action now? It's nearly all program-driven, and when those algorithms start pointing in the other direction...