VANCOUVER (miningweekly.com) – St Louis, Missouri-based coal producer Peabody Energy has received debtor-in-possession (DIP) approval to amend milestones related to the time for a decision on the consolidated net tangible assets (CNTA) issue.
The CNTA, which are calculated by subtracting current liabilities from total assets, will impact the potential recoveries of secured and unsecured creditors. A higher CNTA will increase the recovery of secured creditors, while a lower one will benefit unsecured creditors.
Peabody announced that, while it still intends to complete its reorganisation within the 12-month period originally contemplated for Chapter 11 cases, it will modify the deadline for receiving court approval for its disclosure statement to January 31, 2017, from the original date of January 8, 2017.
If granted, the extensions will take the CNTA-decision deadline and the deadline to file an acceptable plan of reorganisation/disclosure statement to November 23 and December 14, respectively, from the original DIP financing deadlines of October 11 and November 9.
Peabody said that, despite its portfolio of Australian metallurgical and thermal coal assets remaining core to the company, it was exploring the potential sale of selected Australia assets as part of its ongoing plan to optimise its portfolio.
The company has received DIP lender consent to amend its loan facility related to the Australian platform, which allows for the potential sale of some Australian assets.
Peabody noted that, without meaningful progress in continuing mediation, it did not expect it would seek further extensions of the CNTA-decision milestones.
Edited by: Samantha Herbst
Creamer Media Deputy Editor
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