Foresight Energy said it may file for Chapter 11 bankruptcy if it cannot reach an agreement with bondholders over $600 million in debt.
The St. Louis-based coal company has been negotiating with key creditors for some time. In December, a Delaware court ruled that Foresight was in default on bonds. Tuesday was set as the deadline for the company to pay back $23.6 million in overdue bond interest.
The company said its auditors have raised going concern doubts.
Foresight is one of multiple miners from the St. Louis area that has flirted with or declared bankruptcy as diminished demand for coal, stricter environmental regulations and heated competition from natural gas combine to hurt the coal business.
Creve Coeur-based Arch Coal has entered bankruptcy protection, and St. Louis-based Peabody said its lenders are seeking to restructure debt through bankruptcy.