Peabody Energy’s Second Amended Plan of Reorganization [Revised] became effective, and the Company emerged from Chapter 11 protection. The U.S. Bankruptcy Court confirmed the Plan on March 17, 2017.
BankruptcyData’s Plan Summary 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….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.”
The Company announced that its post-emergence common stock will begin trading on the New York Stock Exchange under the ticker symbol BTU. Peabody Energy’s president and C.E.O., Glenn Kellow, comments, “We believe that ‘The New BTU’ is well positioned to create substantial value for shareholders and other stakeholders over time. Peabody is the only global pure-play coal investment, and we have the scale, quality of assets and people, and diversity of geography and products to be highly competitive. We also have taken significant steps to create a capital structure to succeed through all cycles. Our financial focus will now be on reducing debt, targeting high-return investments and returning cash to shareholders over time.”
This coal processor filed for Chapter 11 protection on April 13, 2016, listing $11.1 billion in pre-petition assets.
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