Struggling U.S. coal miner Foresight Energy LP and a group of bondholders are closing in on a deal in which billionaire founder Chris Cline would inject cash to repay the creditors, according to people with knowledge of the matter.
The company, which received an extension until April 15 to resolve the dispute with bondholders who claim they are owed more than $600 million, needs an agreement to help stave off bankruptcy amid the worst coal downturn in decades.
Under the deal being discussed, Cline would buy some or all of that debt, said the people, who asked not to be named because the discussions are private. Cline may also invest capital in Foresight’s part-owner Murray Energy Corp., the people said.
Read more: Bloomberg