Lenders to Arch Coal Inc. are close to picking a replacement for Bank of America Corp., which resigned last month as their agent bank amid an escalating creditor feud, Bloomberg News reported on Friday. Wilmington Trust NA is the top choice to fill the role as an advocate for holders of a $1.9 billion term loan after Bank of America quit when a group of lenders asked it not to sign off on a debt swap. The firm hasn’t been hired yet, according to those familiar with the negotiations. If Wilmington Trust gets the loan-agent job, it will walk into a squabble that’s pitting senior lenders against Arch Coal and junior bondholders who would benefit from the debt exchange announced six weeks ago. Arch Coal is attempting to cut debt costs in a bid to weather a commodities slump that’s already pulled three other large U.S. coal miners into bankruptcy this year.
