Peabody arises from bankruptcy

Peabody Energy has come out of Chapter 11 bankruptcy and will begin trading in the New York Stock Exchange under the ticket symbol BTU.

The company filed bankruptcy last year to reduce its debt amid the weakened coal market.

At the time, it highlighted “industry pressures in recent years including a dramatic drop in the price of metallurgical coal, weakness in the Chinese economy, overproduction of domestic shale gas and ongoing regulatory challenges” as key reasons for filing.

Peabody president and CEO, Glenn Kellow, said the ‘The New BTU’ will create value for both shareholders and stakeholders over time.

“Peabody is the only global pure-play coal investment, and we have the scale, quality of assets and people, and diversity of geography and products to be highly competitive,” he said

“We also have taken significant steps to create a capital structure to succeed through all cycles.

“Our financial focus will now be on reducing debt, targeting high-return investments and returning cash to shareholders over time.”

Peabody has reduced its debt by more than $5 billion over the past year. During that time, it has also accelerated its coal mine restoration, achieved record safety and strengthened its Australian arms.

“We thank our 6,700 employees and all stakeholders for their widespread support for the company and our plan of reorganisation,” Kellow added.

“We look forward to this next phase in our company’s history.”

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