The largest U.S. coal company just filed for bankruptcy
Peabody Energy, the world's largest private-sector coal producer, filed for bankruptcy on Wednesday in a U.S. court, citing "unprecedented" industry pressures and a sharp decline in the price of coal.Coal is a lousy way to make power, but we have a lot of it, and its cheap, and the enviro's and their minions in government keep blocking any other reasonable source in favor of impractical "renewable" energy. As long as the blackout occur in the blue, power consuming areas, and not the red power producing regions, whatever.
The company said it will continue to operate while in bankruptcy, while working to reduce debt and improve cash flow.
"Peabody has a new management team, outstanding workforce, unmatched asset base and strong underlying operational performance that represent a key driver in the company's future success," CEO Glenn Kellow said in a statement announcing the Chapter 11 filing.
In addition to plummeting coal prices, the company cited weakness in China's economy, overproduction of domestic shale gas and ongoing regulatory challenges as reasons for its declining prospects.
Peabody reported a loss of $2 billion last year. Revenue tumbled 17% to $5.6 billion as the average price and amount of coal that it sold fell. It warned of further declines this year due to reduced use of coal by U.S. utilities, along with lower demand from overseas markets.