Arch Coal completes restructuring to emerge from US bankruptcy protection
US-based Arch Coal announced that it has emerged from bankruptcy after securing court approval for a restructuring plan that enables it to clear $5bn debt.
Following the exit from chapter 11 protection, the company will resume trading on the New York Stock Exchange (NYSE).
The company said that it has over $300m of cash on its balance sheet and a debt level of just $363m, which is only 7% of what it was prior to restructuring.
Arch's chief executive officer John Eaves said: "We are extremely pleased with what we have accomplished during our highly expeditious restructuring process, and are eager to move forward with our compelling plan for value creation.
“I am confident we have all the pieces in place for long-term success – an extraordinary workforce, cost-competitive assets, a high-quality reserve base, a clean balance sheet and an excellent management team."
In January, the company filed for Chapter 11 protection after failing to restructure its debt, The Wall Street Journal reported.
Arch Coal now expects its cash requirements to be modest, with projected capital spending of $55m in 2017.
Besides, it holds third-party surety bonds to cover 100% of its reclamation bonding requirements.
Eaves said: “Looking ahead, we will continue our efforts to manage costs rigorously, provide superior service to our customers and strengthen relationships with our business partners, while demonstrating the same unwavering commitment to mine safety and environmental protection that has become a hallmark of our great company."
Arch Coal is a one of the major coal producers for the global steel and power generation industries, with a network of large-scale, low-cost mining complexes and high-quality metallurgical and thermal reserves.