Peabody Declares Bankruptcy

PEABODYPeabody Energy the owner of Twentymile Mine in Routt County, announced yesterday that the company will file for chapter 11 bankruptcy. Chapter 11 bankruptcy allows the company to remain in control of their business operations while restructuring their debt. Peabody has been considering Chapter 11 bankruptcy since the company reported 2 billion dollars in losses in 2015. Peabody President and CEO Glenn Kellow  stated that this was a difficult decision for the company but it is the right choice for the businesses operations to move forward. He also said that this process will help build Peabody into a highly successful global leader for tomorrow. Peabody also announced that the planned sale of mines in New Mexico and Colorado were unsuccessful because the purchaser was unable to complete the transaction. The issues for Peabody, and the coal industry, stem from falling demand for coal, environmental regulations and growing competition from natural gas. These factors forced Peabody to layoff 235 employees at their North Antelope Rochelle Mine last week. The company says that it expects mining operations to continue as usual throughout the bankruptcy process.

Comments are closed.