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Arch Coal warns of possible bankruptcy filing

BECKLEY, W.Va. — In a conference call with analysts Monday morning, Arch Coal confirmed rumors that it may have to file for bankruptcy protection in the “near future” as the industry continues to struggle with declining sales and demand.

With the industry in crisis, the St. Louis-based company reported bigger than expected losses during the third quarter, yet, it still beat Wall Street expectations as its shares rose slightly.

For months there has been talk on Wall Street that Arch is in discussions with creditors as it struggles to restructure its finances. Whether or not an agreement with creditors is reached, Arch Coal executives said the company may still need to file for Chapter 11 bankruptcy protection as soon as this quarter.

The company cited “extremely challenging current market conditions” for its need to restructure its balance sheet, according to a filing with the U.S. Securities and Exchange Commission.

Arch Chief Executive John W. Eaves said the company is seeking a “significant restructuring” of its balance sheet, as cash flow “is not sufficient to service our debt sustainably…

 

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