Peabody Energy Receives Court Approval for Bankruptcy Disclosure Statement Agreements
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Peabody Energy has received approval from the U.S. Bankruptcy Court for the Eastern District of Missouri for the company’s disclosure statement, enabling the company to solicit its creditors to vote on the proposed plan of reorganization. Peabody also received court approval for its plan support agreement, private placement agreement and backstop commitment agreement.
With this court approval, Peabody will begin soliciting votes for its plan of reorganization ahead of a voting deadline of March 3, 2017 at 5 p.m. CST and a hearing to consider confirmation of the plan on March 16, 2017 at 10 a.m. CDT.
The approval of the plan support agreement and related agreements reflect a broad consensus for the company’s Chapter 11 plan among key representatives of its largest creditor constituencies, paving the way towards confirmation of the plan of reorganization. In addition, the new equity investments contemplated by the plan (represented by the fully backstopped $750 million rights offering and $750 million private placement of mandatorily convertible preferred stock) and committed exit debt financing are expected to provide the funding for Peabody’s exit from Chapter 11.
“Today’s court approval of our disclosure statement is another important step forward, allowing our creditors to vote on our plan of reorganization and bringing Peabody ever closer to emergence. We are encouraged by the broad support to date, and look forward to continuing to build momentum. We believe the plan maximizes the value of the enterprise and paves the way for a sustainable future for Peabody,” said Glenn Kellow, president and chief executive officer of Peabody Energy.
Peabody will begin the process of soliciting votes for the plan from eligible stakeholders immediately. The court has set a voting deadline of March 3, 2017 at 5 p.m. CST for eligible stakeholders. The plan is subject to confirmation by the bankruptcy court.
About Peabody Energy
Peabody Energy is the world’s largest private-sector coal company and a Fortune 500 company. The company serves metallurgical and thermal coal customers in 25 countries on six continents.
To stop by Peabody Energy’s website, CLICK HERE
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