Patriot Coal

More News and Commentary

In Bankruptcy Proceedings, Abandoned Cleanup Costs May Result in Coal Companies Losing Permits on Active Mines

Joshua Learn for SNL: With the threat of liquidation weighing over bankruptcy proceedings involving the largest U.S. coal miners, environmental groups and government regulators must often make difficult choices about environmental liabilities. Brian Resnick of Davis Polk & Wardwell LLP said that as a bankruptcy lawyer, the ideal solution for insolvent producers is to let […]

September 12, 2016 Read More →

IEEFA Sees Another Round of Bankruptcy in Peabody’s Plan to Emerge From Bankruptcy

‘Overly optimistic’ on Financial Projections, Production Outlook, and Cost-Control Results; Lacking a Sound Assessment of Self-Bonding Costs; Overblown Numbers on Mineable Reserves

CLEVELAND, Sept. 7, 2016 ( — The Institute for Energy Economics and Financial Analysis today published a memorandum explaining how Peabody Energy’s plan to emerge from bankruptcy will probably result in a second bankruptcy. The memo (“Peabody Energy’s Five-Year Plan to Emerge From Bankruptcy Is Not Credible”), says the company’s reorganization strategy ignores core market […]

and September 7, 2016 Read More →
IEEFA Alert: Peabody’s Plan to Emerge From Bankruptcy Is Likely to End in Bankruptcy Again 

IEEFA Alert: Peabody’s Plan to Emerge From Bankruptcy Is Likely to End in Bankruptcy Again 

Shades Of What Happened to Patriot Coal, a Spinoff That Overstated Minable Reserves and Was Overly Optimistic on the Effects of Its Cost-Cutting Strategies

Peabody Energy’s plan to emerge from bankruptcy will most likely end ironically. In another bankruptcy, that is. We’ve studied the plan and find it lacking in credibility on several points (here’s the underlying research memo we recently put together). The plan is overly optimistic on financial projections in key areas, in its coal-production outlook and […]

September 7, 2016 Read More →

U.S. Coal Companies Spent Millions on Executive Bonuses and Lobbying Before Filing for Bankruptcy

Jennifer A Dlouhy for Bloomberg News: Five coal-mining companies spent $95 million to lobby U.S. lawmakers and more than half a billion dollars on salaries for top executives in the decade before they filed for bankruptcy, according to a report by an environmental group. At the same time, the companies — Walter Energy Inc., Patriot […]

June 29, 2016 Read More →

On the Blogs: ‘Coal Isn’t Dying Because There’s a War on It’

Barry Ritholtz for Bloomberg View: I never cease to be amazed how people with an agenda massage facts, or omit them, in order to support their cause. It comes up in the investing world, where these agendas often lead to money-losing decisions. Being able to detect this sort of nonsense is good over the long […]

June 21, 2016 Read More →

Market Cap of U.S. Coal Companies Continues to Fall

Christopher Coats for SNL: The combined market value of major publicly traded U.S. coal producers continues to erode, now standing at approximately $4.59 billion, or 4.7% less than in November 2015, according to an S&P Global Market Intelligence analysis. Since April 2011, the group of 13 U.S. coal producers has lost more than 92% of […]

March 23, 2016 Read More →

S&P: ‘No Positive Outlooks’ Across U.S. Coal Sector

Taylor Kuykendall for SNL: Chiza Vitta, an analyst with Standard & Poor’s Ratings Services, noted that six companies are currently rated a “D,” indicating a fairly high level of stress. The companies — Patriot Coal Corp., Walter Energy Inc., Alpha Natural Resources Inc., Arch Coal Inc., Foresight Energy LP and Peabody Energy Corp. — represent […]

March 23, 2016 Read More →

Peabody Presses Case That Would Excuse It From Honoring Retiree Benefits

Jacob Barker for the St. Louis Post-Dispatch: Patriot Coal assumed responsibility for thousands of Peabody Energy retirees in Appalachia and the coal-rich Illinois Basin after Peabody spun it off in 2007. Two years ago, Patriot concluded its first bankruptcy in St. Louis with a deal to reduce its health care and pension obligations to retirees. […]

November 9, 2015 Read More →

Peabody and Patriot May Have Found a Way to Dodge Workers’ Pension Payments

Jacob Barker for the St. Louis Post-Dispatch: A squabble between Peabody Energy and bankrupt Patriot Coal is putting funding for a special trust that pays retired coal miner health benefits at risk. Bankrupt miner Patriot Coal and the United Mine Workers of America are accusing St. Louis-based Peabody Energy of trying to get out of […]

October 26, 2015 Read More →
More Stark Words and Pictures on Just How Bad Things Have Gotten for U.S. Coal Producers

More Stark Words and Pictures on Just How Bad Things Have Gotten for U.S. Coal Producers

A Once-Towering Industry Has Become ‘Only a Fraction of Its Former Self’

SNL is out today with an article that explains in stark words and pictures just how bad things are for the U.S. coal industry. The article, by Christopher Coats, starts like this: “In a year that has seen the coal industry’s financing and investment landscape become especially troubling for domestic producers, the market value of U.S. […]

October 22, 2015 Read More →