Coal Miner Peabody Set to Exit Bankruptcy

By Energy FOXBusiness

The ticker and stock information for Peabody Energy is displayed at the post where the stock is traded on the floor of the New York Stock Exchange (NYSE) March 16, 2016. REUTERS/Brendan McDermid (Copyright Reuters 2016)

Peabody Energy (BTUUQ), the largest privately held coal miner in the U.S., is on track to exit bankruptcy in April. The news comes as President Donald Trump continued his effort to roll back the Obama administration’s regulatory measures placed on the coal industry.

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The judge overseeing the process said Thursday he intends to approve Peabody’s amended plan to emerge from bankruptcy early next month, about a year after Peabody filed for Chapter 11 protection. The St. Louis-based coal company expects its new equity to trade on the New York Stock Exchange, separate from its existing ticker symbol BTUUQ.

“Peabody has accomplished the goals set out nearly a year ago, against an industry backdrop that has strengthened,” Peabody President and CEO Glenn Kellow said in a statement.

As Peabody plots its return, a battle between Trump and lawmakers is heating up. In the White House’s budget proposal released this week, Trump is asking Congress to pull funding for President Barack Obama’s Clean Power Plan, which is stuck in federal court amid a legal battle.

On the campaign trail, Trump was a vocal critic of clean energy policies, instead pushing his support for coal. These efforts helped him win key states, including West Virginia, and ultimately the election.

Peabody is one of several mining companies that sought bankruptcy protection after coming under heavy pressure from low natural gas prices and new regulations. Patriot Coal, a Peabody spinoff, went bankrupt in May 2015 for the second time in 18 months. About 50 coal companies in total have filed for bankruptcy during coal’s recent decline, Peabody said at the time of its filing.

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