U.S. coal giant Peabody Energy Corp. filed for bankruptcy on Wednesday amid the coal industry’s worst slump in decades.
The St. Louis-based company filed Chapter 11 petitions for most of its U.S. entities in U.S. Bankruptcy Court in St. Louis Wednesday, listing $10.1 billion in debt. Peabody said its mines and offices will continue to operate during the process.
None of Peabody’s Australian entities were included in the process, and the company said those operations will continue as usual.
“This was a difficult decision, but it is the right path forward for Peabody. We begin today to build a highly successful global leader for tomorrow,” Glenn Kellow, president and CEO, said in a statement. The company cited the drop in the price of metallurgical coal, weakness in the Chinese economy, overproduction of domestic shale gas and ongoing regulatory challenges as factors contributing to the bankruptcy.