Bankruptcy | St. Louis Public Radio

Bankruptcy

A view of the outside of the Peabody Energy building in St. Louis.
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Peabody Energy has emerged from bankruptcy with less debt and a shift in focus. The St. Louis-based coal company spent roughly a year under Chapter 11 protection and some of the same industry-wide challenges remain – government regulation and cheaper energy producing options, such as natural gas.

In a release when Peabody emerged from bankruptcy earlier this month, Chief Executive Officer Glenn Kellow sounded upbeat.

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St. Louis-based Peabody Energy will again trade on the New York Stock Exchange beginning on Tuesday, as they announced that they're emerging from bankruptcy.

It will be under its old ticker symbol BTU, but company officials are calling it a new day.

“We believe that ‘The New BTU’ is well positioned to create substantial value for shareholders and other stakeholders over time,” said Peabody President and CEO Glenn Kellow in a press release.

The coal company says it shed about $5 billion in debt from the time it filed for Chapter 11 in April 2016.

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A federal bankruptcy judge in St. Louis denied a motion Thursday to give shareholders in Peabody Energy an equity committee that would represent their interests during the coal giant’s bankruptcy.

Judge Barry Schermer delivered his ruling after the hearing, and said the cost of creating an equity committee was not justified if there was no equity to offer shareholders.

Peabody’s reorganization plan, released in December, calls for zeroing out shareholders’ equity.

Peabody describes itself as the world's largest private-sector coal company
Peabody Energy

Peabody Energy is mapping out its plan to emerge from bankruptcy protection next spring.

The coal company has filed a financial reorganization proposal with the U.S. Bankruptcy Court in St. Louis that calls for shedding more than $5 billion in debt and eventually issuing new common stock. Current shareholders would not receive anything and might oppose the plan.

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St. Louis-based Peabody Energy will set aside part of the funding it promised toward future mine reclamation in Illinois.

The coal giant reached a settlement with the Illinois Department of Natural Resources this week. The agreement puts “super-priority” status on $12.9 million for mine reclamation in Illinois, placing that funding ahead of other entities with claims in Peabody’s bankruptcy suit.

The motion for the agreement will be heard by a federal judge on Sept. 15.

Flickr/Paul Sableman

St. Louis-based Patriot Coal announced Tuesday that a federal bankruptcy judge has approved the company’s reorganization plan, clearing the way to come out of bankruptcy.

Patriot officials said the company will close on its exit financing and emerge from Chapter 11 Wednesday.

The company filed for bankruptcy in July, 2012. At the time, Patriot cited a low demand for coal and big costs for retiree benefits.

Twelve former employees of the St. Louis Post-Dispatch have sued the paper, saying corporate officials lied to them about the benefits the employees would receive after taking an early retirement offer in 2007.

(via Flickr/pasa47)

The owner of the St. Louis Post-Dispatch announced today that it will file for Chapter 11 bankruptcy this month.

Lee Enterprises, based in Davenport, Iowa, says it will allow the company to restructure its debt and exit bankruptcy within 60 days.

The company said in a press release that the filing would not affect employees, vendors and customers.

via Flickr/jennlynndesign

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