Peabody files for US bankruptcy

Peabody files for US bankruptcy

The world’s largest privately-owned coal company Peabody Energy Corp (NYSE:BTU) has filed for bankruptcy protection in the US.

The Chapter 11 bankruptcy claim comes as dwindling coal prices resulted in the company being unable to service a recent debt-funded expansion into Australia.

Although Peabody said in a statement its Australian operations would not be affected by the proceedings.

“Through this process the company intends to reduce its overall debt level, lower fixed charges, improve operating cash flow and position the company for long-term success, while continuing to operate under the protection of the court process,” the Peabody statement read.

“All of the company’s mines and offices are continuing to operate in the ordinary course of business and are expected to continue doing so for the duration of the process.”

Peabody added that its Australian operations had seen a rise in earnings for 2015 despite the sharp fall in coal prices.

“No Australian entities are included in the filings, and Australian operations are continuing as usual.”