Arch Coal, in a bid to shed 4.5 BILLION in debt, files for bankruptcy [View all]

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Arch Coal Files for Bankruptcy: Will Taxpayers Be Left Holding the Bag for Millions in Cleanup Costs?

Today, Arch Coal, the nation’s second-largest coal producer, filed for bankruptcy. The news comes after Arch Coal missed a debt payment on Dec. 15, 2015, triggering a 30-day countdown to a Chapter 11 filing. Arch was recently served with a delisting notice from the New York Stock Exchange after its trading priced dropped to less than one dollar per share.

The news is the latest in a series of blows to the coal industry. Alpha Natural Resources, Patriot coal and Walter Energy have all filed for bankruptcy protection recently. Fitch Ratings says that Peabody—the nation’s biggest coal company—could be next.

Arch aims to restructure $4.5 billion worth of debt. Its stock price has fallen 99 percent over the last year. In November, it reported a $2.1 billion third quarter loss. Like most existing major U.S. coal companies, Arch made massive and ill-advised acquisitions at the zenith of the coal market, paying $3.4 billion for International Coal Group in 2011.

Let’s hope that Arch employees and their families don’t endure the same fate as those of Patriot coal, which was spun off by Peabody largely as a way to get rid of “legacy” obligations like pensions.

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http://ecowatch.com/2016/01/11/arch-coal/