World’s Largest Coal Company Expected to File for Bankruptcy as Stock Price Tanks

Peabody Energy, a leading coal company in the US and the world’s largest, may soon file for Chapter 11 bankruptcy. Last week, the company’s stock closed at a six-month low of $2.19 per share, recording a 46% fall. The energy giant is the world’s largest privately owned coal company with a more than 130-year corporate history. The financially stretched Peabody in mid-March missed $93 million in interest payments. The debt burden of the company escalated after its $4.9 billion takeover of Australia’s Macarthur Coal. The US coal company took over the Australian mine in 2011 at the height of commodities boom. The company is not able to timely, successfully or efficiently implement the strategies they are pursuing to improve their operating performance and financial position, obtain alternative sources of capital or otherwise meet their liquidity needs. According to coal industry experts, the acquisition of Macarthur had burdened Peabody with $8.3 billion of debt, which, it is finding it difficult to repay.

Read Full News At: http://www.researz.com/worlds-largest-coal-company-expected-file-bankruptcy-stock-price-tanks

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