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Arch Coal files for Chapter 11 bankruptcy

Register-Herald photo A sign outside Arch Coal's Beckley Mining Complex in Eccles. Arch Coal filed bankruptcy Monday.
Register-Herald photo
A sign outside Arch Coal’s Beckley Mining Complex in Eccles. Arch Coal filed bankruptcy Monday.

BECKLEY, W.Va. — For months, rumors from business circles to the coalfields were that Arch Coal Inc. was on the cusp of bankruptcy, but somehow the company kept those rumors from becoming fact.

However, fact they did become Monday as Arch filed the necessary paperwork in U.S. Bankruptcy Court in St. Louis to start Chapter 11 protection.

 Arch’s action comes after Alpha Natural Resources, Walter Energy and Patriot Coal Co., filed for bankruptcy protection last year. The only large coal producer left not seeking bankruptcy protection is Peabody Energy, which doesn’t have current operations in West Virginia.

John W. Eaves, Arch’s chairman and CEO, said the filing is a significant step in its efforts for long-term viability in an ever shrinking coal market.

“After carefully evaluating our options, we determined that implementing these agreements through a court-supervised process represents the best way to solidify our financial position and strengthen our balance sheet. We are confident that this comprehensive financial restructuring will further enhance Arch’s position as a large-scale, low-cost operator…

 

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