Arch Coal agrees to deal for new bankruptcy exit plan

Arch Coal said Tuesday it has reached a deal with unsecured creditors on a new restructuring agreement that would allow it to exit bankruptcy without the threat of litigation.

Under the deal, holders of allowed general unsecured claims would receive 6 percent of Creve Coeur-based Arch Coal’s new outstanding common stock and some $30 million in cash. Bondholders would get $22.6 million in cash, while holders of all other general unsecured claims would receive $7.4 million in claims.

The amended reorganization plan must be approved by Judge Charles Rendlen in U.S. bankruptcy court in St. Louis. A hearing to consider approval of the related disclosure statement is set for Wednesday.

Arch Coal filed for bankruptcy in January after it delayed a $90 million interest payment due in 2015 and ended a previously proposed debt swap.

Read more: St. Louis Business Journal

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