After a string of smaller bankruptcies in the depressed coal sector, the second-largest U.S. coal miner, lawyers and analysts said that Arch Coal Inc., could be next to file for chapter 11 protection if it fails to seal a crucial debt swap this week, Reuters reported. Miners are suffering from stricter regulation and sinking coal prices as energy companies seek cheaper and cleaner generation sources, leading to mine closures and extensive job losses, particularly in Central Appalachia. Arch Coal, with 5,500 employees in nine states, is heavily indebted after buying International Coal Group during a coal price peak in 2011. The $3.4 billion deal transformed Arch into one of the world's largest producers, but also saddled it with costly assets that are hampering its ability to restore its balance sheet.
