As Engaget reported and I got the press release. WASHINGTON, D.C. – Peabody Energy, the world’s largest private sector coal company and biggest producer of coal in the U.S.. Well it seems they have filed for Chapter 11 bankruptcy protection. First of all, Peabody’s debt burden is $10.1 billion.
I mean can we just say it: coal declares bankruptcy!
So in a statement, the company cited “unprecedented” pressures on the global coal industry. That’s including the dramatic drop in coal prices. Then add some regulatory challenges. However they said mine operations will continue as usual.
Over the past year, Peabody’s share price dropped by 94 percent and the company lost $2 billion in 2015. With today’s bankruptcy filing Peabody joined some of the largest U.S. coal producers. They are including Arch Coal, Alpha Natural Resources, Patriot Coal Corporation and Walter Energy, Inc. in filing for bankruptcy protection.
Friends of the Earth President Erich Pica as a result issued the following response:
With Peabody joining Alpha and Arch Coal in bankruptcy, a clear signal is sent. Coal is therefore a bad investment for investors. That’s as well as the future of the planet. As the bankruptcy proceedings move forward, these companies must be held responsible for the environmental damage they have caused. That’s as well as honor their commitments to their workers. Because frankly coal declares bankruptcy. So any reorganization must leave remaining coal reserves in the ground. As well as finance the clean-up of the areas that have already been impacted.
Finally and honor the previous commitments they have made to their workers.