Peabody receives final approval for $800m financing facility
Coal mining company Peabody Energy has received final approval for its $800m debtor-in-possession (DIP) financing facility.
Approval was given by the US Bankruptcy Court following a hearing before judge Barry Schermer.
Peabody will now have access to capital to ensure it can carry on with business operations as usual during the Chapter 11 process.
The news follows Peabody's voluntarily submission of files in April for Chapter 11 bankruptcy protection, as the company has faced difficulties due to a fall in coal prices.
Other factors included heavy competition and strict regulations that led to the company's inability to pay $10.1bn debt.
A $500m term loan, a $200m bonding accommodation facility, and a cash-collateralised $100m letter of credit facility comprised financing that was offered by a lender group, including participation of various secured lenders and unsecured noteholders.
The US Bankruptcy Court also approved the company's long-term incentive plan for non-insiders.
Orders were also approved for the planned sale of Peabody's interest in the Prairie State Energy Campus.
Peabody Energy president and CEO Glenn Kellow said: "We are pleased with the outcome of today's hearing, including the court's final approval of our DIP financing.
"This marks another important step as we move through the Chapter 11 process and reposition the company for long-term success."
The company's Australian operations are not part of the bankruptcy protection.