Peabody Energy announced that it has received approval of its business plan from the Company’s D.I.P. financing lenders. The business plan forms the foundation for the plan of reorganization that the Company expects to file with the U.S. Bankruptcy Court before year-end. Both the business plan and the plan of reorganization are critical milestones for Peabody Energy’s eventual emergence from Chapter 11 protection.
Peabody Energy’s president and C.E.O., Glenn Kellow, comments, “We are pleased to advance a realistic plan that recognizes both the challenges and opportunities related to the company and industry. As Peabody focuses on emerging stronger from the Chapter 11 process, we look to capitalize on our strengths, build upon our positive operating performance, reduce our overall debt and fixed charges, and pursue additional improvements for long-term success. Peabody has a strong asset base and skilled workforce intent on creating maximum value in an essential industry.”
Over the five-year business plan period, the Company contemplates total sales volumes rising from 168 million tons in 2016 to a range of 194 to 197 million tons per year between 2018 and 2021. Revenues are anticipated to be largely stable between $4.4 billion and $4.6 billion, while EBITDAR is expected to rise 60 to 65% from 2016 levels by the end of the business plan.
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