The Financial Times – James Wilson and Ed Crooks
Coal mining company ground down by high debt, low prices and falling demand
The crisis in coal mining has claimed its biggest victim yet as Peabody Energy filed for bankruptcy protection on Wednesday after being ground down by high debt levels, low prices and falling demand.
The world’s largest private sector coal producer by output sought protection under Chapter 11 of the US bankruptcy code in a Missouri court, weeks after it delayed two bond interest payments and warned of its potential inability to continue as a going concern.
The US mining company reported a net loss of $2bn for last year and is labouring under a net debt pile of about $6bn. It joins 50 US coal miners in resorting to bankruptcy protection since 2012.
Read The Financial Times article here.