Peabody Energy, the country’s largest coal producer, said on Thursday its main creditors support a plan to wipe more than $5 billion of debt from its balance sheet and exit this year’s largest energy-related U.S. bankruptcy.
Under a reorganization plan filed with the U.S. Bankruptcy Court, St. Louis-based Peabody said it expects to cut its debt to $1.95 billion from more than $8 billion when it emerges from Chapter 11 in the second quarter of 2017.
The company filed for bankruptcy protection in April.
Peabody’s plan contemplates a $750 million rights offering, a $750 million private placement and the issuance of new common stock. The company said it has the support of the vast majority of its creditors.
Read more: St. Louis Post-Dispatch