Peabody Energy wins $1.5B in financing to exit Chapter 11
Jan. 12, 2017 6:54 PM ET|About:
Peabody Energy Corp. (BTUUQ)|By:
Carl Surran, SA News Editor
Peabody Energy (
OTCPK
TUUQ) says a group of banks, including affiliates of Goldman Sachs, JPMorgan Chase and Credit Suisse, has
pledged $1.5B in loans to help it exit bankruptcy in the coming months.
The cash will be used to cover claims by BTU's secured lenders and provide "a strong foundation" for its capital structure when it exits Chapter 11 bankruptcy it filed last April, court documents say.
BTU expects to emerge from Chapter 11 in Q2 with a plan, supported by most of its creditors, to cut more than $5B of debt and raise new capital through a $750M private placement and a $750M rights offering.