Peabody’s ability to operate as a “going concern” is in doubt, the company said in a regulatory filing with the U.S. Securities and Exchange Commission Wednesday.
Bloomberg is reporting that Peabody Energy Corp., the largest U.S. coal miner, said it may not be financially strong enough to remain in business in its current form and that the company may seek bankruptcy protection.
Peabody's ability to operate as a “going concern” is in doubt, the company said in a regulatory filing with the U.S. Securities and Exchange Commission Wednesday. “Going concern” is an accounting term used to describe a business that has the resources it needs to continue running.
The St. Louis-based company, which has been ravaged by the coal market's worst downturn in decades, is seeking ways to ease its debt burden as rivals including Alpha Natural Resources Inc. and Arch Coal Inc. filed for bankruptcy. Peabody in recent months has struggled to close the sale of three coal mines in the western U.S. to Bowie Resource Partners and to renegotiate payment terms with its creditors.
“There can be no assurance that our plan to improve our operating performance and financial position will be successful,” Peabody said in the filing. “We may need to voluntarily seek protection under Chapter 11.”
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