Arch Coal Inc. has tapped restructuring advisers to explore ways to decrease its multibillion-dollar debt load as a deep coal-market slump continues to weigh on the mining company and its rivals, the Wall Street Journal reported today. The St. Louis company is working with lawyers at Davis Polk & Wardwell LLP and financial advisers at Blackstone Group LP. Arch isn’t planning a broad restructuring of its debt load through bankruptcy, but is instead looking to trim its debt through deals with bondholder groups. Arch is in talks with holders of its bonds due in 2020, and one potential option is for the company to swap the bonds for new, higher-ranking debt. The bondholders, advised by investment bank Moelis & Co., include Blackstone’s credit arm, GSO Capital Partners; and hedge fund Hutchin Hill Capital LP.
