Arch Coal files for bankruptcy amid decline of US sector

Arch Coal (NYSE:ACI), the U.S. second-largest miner of the commodity, said Monday it had filed for chapter 11 bankruptcy protection as part of a reorganization plan aimed at trimming $4.5 billion in debt.

The St. Louis-based company said it reached an agreement with a majority of lenders under its $1.9 billion first-lien facility to restructure its debt. Arch Coal said it entered into a restructuring-support agreement with members of an ad hoc group of lenders that hold more than 50% of its first-lien debt.

"The company believes it has sufficient liquidity to continue its normal mining activities and to meet its obligations in the ordinary course," it said in the statement.

Last month, Arch Coal exercised a 30-day grade period to pay about $US90 million in interest payments due Dec. 15 on bonds. Also in December, the New York Stock Exchange told the company it didn’t meet the standards to remain listed.

More to come…

The post Arch Coal files for bankruptcy amid decline of US sector appeared first on MINING.com.

from MINING.com http://ift.tt/1OKkrv0