Last Friday, anyone driving past the Holiday Inn Express in Douglas, Wyoming, might have remarked on the large number of American-made pickup trucks in the parking lot. If they stuck around for a while, they would have seen that most of those pickup trucks belonged to stoney-faced men, who emerged from the hotel one-by-one, clutching blue folders.
“They put us all in one room and they told us all they were sorry, it was a layoff,” Kyle Christiansen recounted.
Peabody Energy is one of the largest coal companies in the world and operates mines all over the United States. But some of its senior lenders are now recommending bankruptcy, as the company faces potential defaults on several loans.
Recent court documents show that Arch Coal paid executives more than $8 million in bonuses just days before the company declared bankruptcy.
Arch Coal filed for Chapter 11 bankruptcy in early January. In the days leading up to that filing, the company gave its CEO John Eaves, a bonus of $2.7 million and made payments to other top executives.
In financial documents filed this week, one of the largest coal companies in the world warned that it may file for bankruptcy, in part, because the company may not be able to make upcoming debt payments.
Just this week, Peabody Energy missed around $70 million dollars worth of interest payments and instead chose to take advantage of a 30-day grace period.