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Peabody Energy Bankruptcy Plan Summarized

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BankruptcyData’s detailed analysis and summary of Peabody Energy’s Second Amended Plan of Reorganization [Revised], dated March 15, 2017, is now available. The U.S. Bankruptcy Court confirmed the Plan on March 17, 2017; however, an effective date has not yet been issued.

BankruptcyData notes, “The Plan and the Global Settlement Agreement contemplates that the Debtors’ debt burden will be reduced by over $6.6 billion, a necessary step for the Debtors’ financial health given the volatile industry in which the Debtors operates. The Plan will provide creditors with recoveries, funded in large part by a $1.5 billion first lien exit facility, subject to being upsized as described herein, a $750 million rights offering available to holders of Allowed Second Lien Notes Claims in Class 2 and Allowed General Unsecured Claims in Class 5B as of the Rights Offering Record Date and a $750 million direct investment by the Noteholder Co-Proponents and certain additional creditors.”

In addition, “Ultimately, to resolve the Valuation Dispute, in connection with the Global Settlement embodied in the Plan, the Plan Proponents agreed that the Plan enterprise value is $4.275 billion and that Plan equity value is $3.105 billion.”

BankruptcyData’s Plan Summary continues, “The Liquidation Analysis for Reorganized Peabody Energy Corporation estimates the Total Distribution Value to be between $2,854.8 million and $3,254.7 million with the Midpoint to be $3,053.0 million. The recovery rate to the First Lien Lender Claims is estimated to be between 85% and 91%. The recovery rate to the Second Lien Notes Claims and General Unsecured Claims is estimated to be zero.”

BankruptcyData subscribers receive access to the full summary, which provides further details on corporate background, events leading to Peabody Energy’s April 30, 2016 Chapter 11 filing, recovery specifications and a comprehensive break-down of all claimant classes.

Read more Peabody Energy bankruptcy news.

The post Peabody Energy Bankruptcy Plan Summarized appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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