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.
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…