Peabody, world's top private coal miner, files for bankruptcy

[nitpicker]

Source: Reuters


Peabody, world's top private coal miner, files for bankruptcy
Reuters

By Tracy Rucinski and Tom Hals

3 hrs ago

Peabody Energy Corp (BTU.N), the world's largest privately owned coal producer, filed for U.S. bankruptcy protection on Wednesday in the wake of a sharp fall in coal prices that left it unable to service a recent debt-fueled expansion into Australia. The company listed both assets and liabilities in the range of $10 billion to $50 billion, according to a court filing.

Peabody's Chapter 11 bankruptcy filing ranks among the largest in the commodities sector since energy and metals prices began to fall in the middle of 2014 as once fast-growing markets such as China and Brazil began to slow.
(snip)

Peabody's debt troubles date back to its $5.1 billion leveraged buyout of Australia's Macarthur in 2011, a coveted asset at the time meant to position it as a supplier of metallurgical coal for Asian steel mills. But as demand for metallurgical coal fell, particularly in China, Peabody's financial woes intensified. It made a $700 million writedown on its Australian metallurgical coal assets last year.
(snip)


Read more: http://www.msn.com/en-us/money/companies/peabody-worlds-top-private-coal-miner-files-for-bankruptcy/ar-BBrGZD4?li=BBnb7Kz&ocid=DELLDHP

[Monk06]

1. Resource companies are crooks and enviro rapists Thier investors are right wing gambling addicts

I love it when resource bubbles burst

The right people go broke and the earth gets a rest

[yellowcanine]

7. "the earth gets a rest" Actually no. Many coal companies have gone bankrupt.

They keep right on operating as they get "reorganized." The workforce shrinks down and people get laid off. The new management looks for "efficiencies" often meaning even more corners get cut regarding safety and environmental regulations.

[Monk06]

18. Yeah I know that I was just trying to be hopeful. I was a mining magazine editor during the

resource boom of 2003 to 2008 I know how sleazy mining executives are I interviewed all of them from Newmont and Barrick to the lowest Juniour Ex companies

I also covered the beginning of the Oil Sands development and everyone flat out lied about the environmental impacts and mine mitigation

That area will be distroyed environmentally simply because it is too huge an area There isn't enough money in the Canadian economy to fix the damage even if the mining industry was in favour of best practices

Which they are not

So whenever a mining exec says the word sustainability he is getting ready to lie to you

On the bright side I think big coal will steadily decline to a few projects supplyin the steel industry as coal fired electricity goes to the grave from wind and solar development

[AxionExcel]

2. Crappy corporate karma comes home to roost.

Creator of vast human misery, and staggeringly stupendous earthly pollution.

[houston16revival]

3. Stock price collapse

$299 in 2014

$2 today and now suspended from trading and presumed worthless

[mpcamb]

16. They needed those 2 years of stock decline to loot the pensions.

[egold2604]

4. Mr Peabody's coal train will no longer haul it away. It's bankrupt

[dixiegrrrrl]

11. Wow....that is powerful.

I know of John Prine, but did not know of this song.

[Stuckinthebush]

13. That's the first thing I started singing when I read this!

Great song and great song writer.

[PaddyIrishman]

17. Same here

Love John Prine.

[Mojorabbit]

15. Beat me to it! nt

[bemildred]

5. Awesome. nt

[UpInArms]

6. Load up on debt

File bankruptcy ... Privatize the profits
Socialize the risks

[dixiegrrrrl]

10. " debt-fueled expansion"

Hundreds.....thousands....of companies are in this category, in a faltering economy.....

[Fritz Walter]

8. Who's going to bankroll Mitch McTurtle's next campaign?

He's always been in Big Coal's back pocket, so I'm sure he's circling the wagons -- or coal hoppers (train cars) -- right now.

If you've ever seen the effects of strip mining in Appalachia, you'll shed no tears with this news. At least not until Peabody uses bankruptcy to weasel their way out of environmental clean-up obligations.

[vkkv]

9. Shareholders should pay for the losses created by greed of the company that they invest in..

Pretty obvious to anyone with a spine - or ethics.

[tabasco]

12. Gotta shed those retirement plans!

U.S., coal companies like Patriot are formed to fail, then shed all of their commitments to miners and their families in bankruptcy. It's a travesty that this is done under the auspices of our government.

It makes me puke when I see so many "Friends of Coal" stickers on vehicles here in WV.

[Taitertots]

14. The owners (stockholders) should have to repay their debtors

Debts > Assests
Debts < Assets + dividends + executive salary

Can someone remind me why we created a system that encourages socially negative behaviors?