The U.S. Bankruptcy Court confirmed Peabody Energy’s (PEC) Second Amended Joint Plan of Reorganization following finalization of language regarding a settlement between the Company and the U.S. Department of Justice. The Company expects to emerge from Chapter 11 protection in early April 2017.
As previously reported, the Plan notes, “On or as soon as practicable after the Effective Date, unless otherwise agreed by a Claim holder and the applicable Debtor or Reorganized Debtor: A. each holder of an Allowed General Unsecured Claim in Class 5A against PEC will receive its Pro Rata share of $5 million plus any Additional PEC Cash.” President and C.E.O. Glenn Kellow comments, “While there is no question that this has been a difficult process, we can all be proud of the broad consensus reached by so many stakeholders and the rapid way so many came together to agree to a path forward for the new Peabody. Today’s outcome further builds on our momentum as we move to emergence and position Peabody for long-term success.”
As a result of the bankruptcy proceeding, Peabody Energy reduced its pre-filing debt levels by more than $5 billion and sold non-core assets. The Company anticipates that its new, post-reorganization equity will trade on the NYSE.
This coal processor filed for Chapter 11 protection on April 13, 2016, listing $11.1 billion in pre-petition assets. Read more Peabody Energy bankruptcy news.
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