Just like in the movie Atlas Shrugs, the 2nd largest coalproducer in America files for bankruptcy.
U.S.-based Arch Coal is one of the world's largest coal producers and marketers, with 134 million tons of coal sold in 2014. Their core business is supplying cleaner-burning, low-sulfur thermal and metallurgical coal to power generators and steel manufacturers on five continents.
Arch is the most diversified American coal company with mining complexes across every major U.S. coal supply basin. In total, they represent over 13% of America’s coal supply from our active mining complexes in Wyoming, Colorado, Illinois, West Virginia, Kentucky, Virginia and Maryland.
They control a vast domestic reserve base of more than 5 billion tons.
Thanks to the harsh regulations that Obama and his EPA have placed on the coal industry, on January 11, 2016, Arch Coal announced that it reached an agreement with the majority of its senior lenders on the terms of a financial restructuring that is expected to eliminate more than $4.5 billion in debt from Arch’s balance sheet and position the company for long-term financial success. To facilitate this financial restructuring, Arch elected to file for reorganization under Chapter 11 of the Bankruptcy Code.
They state their mining operations and customer shipments will continue in the ordinary course throughout this court-supervised process.
Arch says that they will continue to be one of the strongest competitors in the industry – supported by our large-scale and low-cost operations. The court-supervised process will allow them to continue to operate in the ordinary course. They fully expect to continue to pay their employees, suppliers and vendors and to deliver exceptional customer service, while they strengthen their position as a leading miner and marketer of coal.
Arch was also the third largest taxpayer, in primarily conservative, Wyoming during 2014 when the company paid $1.1 billion in taxes.
And it has $458 million in unsecured reclamation liabilities in the state.