Coal Slump Sends Mining Giant Peabody Energy Into Bankruptcy
- Biggest U.S. producer felled by cheap gas, China slowdown
- Environmental costs could complicate miner’s reorganization
Peabody Energy Files for Chapter 11 Bankruptcy
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Peabody Energy Corp. filed for bankruptcy on Wednesday, the most powerful convulsion yet in an industry that’s still waiting for the coal market to bottom out.
The company is seeking to reorganize U.S. operations in federal court in its hometown of St. Louis, reducing an estimated $10.1 billion in debt, according to court filings. It’s the biggest U.S. corporate bankruptcy this year by liabilities, according to data compiled by Bloomberg.