After reporting a $2 billion loss in the third quarter, Arch Coal says it could declare bankruptcy in "the near term."
Arch canceled its quarterly earnings call, citing talks with creditors. But in its filings with the Securities and Exchange Commission, Arch says regardless of whether it is able to reach an agreement with those creditors, it may need to file for Chapter 11, which would allow the company to restructure.
Arch has billions of dollars in debt but little cash flow as the market for coal continues to weaken.
If Arch were to declare bankruptcy, it wouldn’t be the first of the coal majors. Alpha Natural Resources declared bankruptcy in August, following on the heels of Patriot Coal and Walter Energy.
Arch is the country’s second largest coal miner.