US Bankruptcy Court clears Arch Coal’s amended restructuring plan

14 September 2016 (Last Updated September 14th, 2016 18:30)

The US Bankruptcy Court for the Eastern District of Missouri has confirmed Arch Coal's amended plan of reorganisation, which allows the company to eliminate more than $4.7bn of debt.

The US Bankruptcy Court for the Eastern District of Missouri has confirmed Arch Coal's amended plan of reorganisation, which allows the company to eliminate more than $4.7bn of debt. 

Arch Coal is expected to emerge from bankruptcy in early October.

Arch Coal CEO John Eaves said: "The court's confirmation of our plan is the final legal step in our successful financial restructuring.

"We will emerge as a strong, well-positioned natural resource company with a compelling plan for value creation.

"The court's confirmation of our plan is the final legal step in our successful financial restructuring."

"We have accomplished a great deal through the restructuring process and are confident that we have established a solid foundation for long-term success, built on our strong metallurgical and thermal franchises and our core commitment to safety and environmental excellence."

The plan received support from Arch Coal’s creditors, incorporates and implements the terms of a global settlement agreement reached by the company with certain senior secured lenders and the official committee of unsecured creditors.

In January, Arch Coal and all its wholly owned domestic subsidiaries filed voluntary petitions for reorganisation under Chapter 11 of the Bankruptcy Code in a bid to facilitate financial restructuring.

The court then granted interim approval of a $275m debtor-in-possession (DIP) financing to Arch Coal.

The announced previously that its mining operations and customer shipments will continue without any interruption throughout the reorganisation process.

Approval was also given to the company to continue its $200m trade accounts' receivable securitisation facility.