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BREAKING: Arch Coal files for bankruptcy

Arch Coal announced this morning that the company has filed for chapter 11 bankruptcy. It has reached an agreement with a majority of the lenders under its $1.9 billion first lien financing facility to significantly restructure the company's debt load, the company said in a statement. Arch has entered into a restructuring support agreement with the members of an ad hoc group of lenders that hold more than 50% of the company's first lien debt. Under the terms of the agreement, the lenders have agreed to support a restructuring transaction that will eliminate more than $4.5 billion in debt from Arch's balance sheet and position the company for long-term success. The St. Louis-based company, which holds significant Wyoming operations, expects its mining operations and customer shipments to continue uninterrupted throughout the reorganization process. "Today's announcement represents another significant step in our ongoing efforts to position the company for long-term success," said John W. Eaves, Arch's chairman and CEO. "After carefully evaluating our options, we determined that implementing these agreements through a court-supervised process represents the best way to solidify our financial position and strengthen our balance sheet. We are confident that this comprehensive financial restructuring will further enhance Arch's position as a large-scale, low-cost operator." "Since the market downturn, we have taken many steps to enhance the efficiency of our operations and to strengthen our asset base," Eaves continued. "As a result, all of our operating segments were cash flow positive during the first three quarters of 2015. We will continue to provide our customers with exceptional service as we move through this process, while maintaining and further reinforcing our position as an industry leader in safety, environmental stewardship and productivity." The Wyoming Department of Environmental released the following statement in response to the news: "Wyoming's reclamation bonds for Arch coal mine operations are secured by Arch Western Resources, a subsidiary of Arch Coal Inc. The agency is currently reviewing the filing and what this means for reclamation obligations for Wyoming permits. Until this runs through the legal process, the department will have no further comment." *Featured image: Loadout silos in the Powder River Basin coal mines in Wyoming. h/t Jim Parkin/shutterstock. * #buckrail #reboot #county10 #dally #oilcity #county17 #springcity #shortgo #bootstrapped