Peabody Energy officially filed for Chapter 11 bankruptcy on Wednesday due to a sharp decline in coal prices leaving it unable to cater a recent debt-fueled expansion into Australia. The case was filed in the U.S. Bankruptcy Court for the Eastern District of Missouri, St. Louis, with case number 16-42529.
According to Reuters, the company's listed assets and liabilities range from $10 billion to $50 billion based on the court filing. Peabody's bankruptcy filing stands among the biggest in the commodities sector since energy and metal prices started to plunge in the mid-2014 as once fast-growing markets like Braxil and China starts to slow.
"This was a difficult decision, but it is the right path forward for Peabody," Chief Executive Officer Glenn Kellow said in a statement. "This process enables us to strengthen liquidity and reduce debt, build upon the significant operational achievements we've made in recent years and lay the foundation for long-term stability and success in the future."
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