Peabody Bankruptcy Affecting School Districts Across the Country

Previously, we reported that Peabody Energy had missed several property tax payments to counties in Colorado that depend on that money for nearly half of the school district's budget. Now counties in Indiana are reporting they were unaware that Peabody's bankruptcy filing would impact property tax payments to schools surrounding the Bear Run Mine in Sullivan County, Indiana. The money funds between 15 and 35% of the county and school district budgets, around $2 million by the end of the year. Part of Peabody's original Chapter 11 filing included the statement that the company "intends to reduce its overall debt level, lower fixed charges, improve operating cash flow and position the company for long-term success, while continuing to operate under the protection of the court process." Peabody’s Vice President-Corporate Communications Beth Sutton said in an email Monday night: "We’ve been made aware of the difficult situation caused by property tax payments missed as a result of our Chapter 11 filing, and the inadvertent effects that the filing may have had. Peabody is evaluating whether there are ways to help lessen the impact through a court-approved process." Story h/t Vincennes Sun-Commercial #county17 #news