Arch Coal Tries To Get Creditors On Board With Bankruptcy Plan
Arch Coal filed an updated version of its plan to get out of bankruptcy today. This legal wrangling is the company’s latest effort to get everyone to agree on a repayment plan.
Arch Coal’s new restructuring plan outlines how various creditors would be paid, or not paid, if the plan is approved.
In a statement, Arch Coal wrote that a group of its senior lenders do support the plan. But not all of the company’s creditors are on board. Some have even threatened to sue.
According to court documents, unsecured creditors, the ones who are considering litigation, are now being offered a share of some the companies assets in the form of cash. But this lack of widespread agreement could mean trouble for Arch's exit plan, which needs to be confirmed in court in order for the company to emerge from bankruptcy.
Arch Coal has mines all over the country, including in Wyoming and Colorado. It has recently laid off workers in both states, the company explained, to restructure in response to declining demand for coal.