The second largest company in coal mining in the world, Peabody Energy has filed a lawsuit to start the process for their own bankruptcy. This is stated in the press release of the company.
The reason Peabody called “unprecedented industrial recession”. Thus, the company “intends to reduce the overall debt burden and fixed costs, improve operating cash flow” and “improve the position for long-term success, while continuing to work under the protection of the court”, reads a press release.
All mine and Peabody offices “continue to operate as usual and are expected to continue to do so during the trial”. “It was a hard decision, but it is the right way forward for Peabody. Today we begin to prepare a highly successful global leader for tomorrow” — is quoted in the press release President and CEO Glenn Kellaway.
As noted by Business Insider, the bankruptcy process takes place against the backdrop of falling coal prices. It led to stop the expansion of the Peabody in Australia, which the company took loans. According to the normative act, according to which the company has filed for bankruptcy, Peabody expects the reorganization.
After the press release of the company’s shares fell to $ 1.91 a losing 47% from the closing price.
Peabody Energy Corporation — the largest private coal company in the world with headquarters in St. Louis, Missouri. Was founded in 1883. By the end of 2015 in Peabody Energy Corporation employed approximately 7,600 employees. The company owns 26 mines in the USA and Australia.