Peabody Energy Corp. hired Lazard Ltd. to advise the coal miner how to restructure its $6.3 billion of debt, Bloomberg News reported yesterday. The largest U.S. coal producer, which is suffering from a collapse in demand for the commodity, is talking to creditors about ways to cut its debt load, including swapping obligations for new shares or convertible notes. That kind of arrangement could allow the company to avoid filing for bankruptcy, which other miners have done in the current coal slump. One of Peabody’s rivals, Arch Coal Inc., is seeking to stave off a bankruptcy filing by doing a debt swap with its creditors. Shares in Arch Coal have tripled since it was reported on Aug. 19 that the company was seeking a compromise with lenders that would allow such a deal.
