Statement from Peabody Energy on 2015
Peabody Energy has now filed its Form 10-K annual report, which includes an opinion from our independent auditors concluding that our current financial path – absent significant improvements, asset sales and/or other favorable changes – may not be sustainable over the course of the year. One practical effect is that this opinion impacts our credit agreement and may result in an acceleration of our debt obligations. We also disclosed that the company has elected to exercise a 30-day grace period related to interest payments due on March 15. This grace period is allowed, and companies using their grace periods may do so for a number of reasons. In our case, we plan to continue to use this time to have conversations with our lenders about our alternatives, while maintaining options around our interest payments. With regards to our liquidity, we had approximately $900 million of available liquidity as of March 11, 2016, consisting primarily of cash and cash equivalents. As previously announced, the company continues to address the challenges of the current industry environment by focusing on its three core priorities: operational, financial and portfolio. Within the financial area, the Company has dual objectives of preserving liquidity and reducing debt. Actions related to these objectives have included extensive discussions with debt holders, and the company expects to have further discussions with lenders.
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