Arch Coal Inc.'s unsecured creditors have asked a judge to pare down a requested $275 million bankruptcy loan by more than half, saying the financing is both unnecessary and too expensive, Dow Jones Daily Bankruptcy Review reported today. In an objection filed on Tuesday, the creditors urged Judge Charles Rendlen III to reconsider an earlier interim order approving the loan, painting it as a gift to the company's lenders, who would take home substantial fees and interest. The creditors have asked the U.S. Bankruptcy Court in St. Louis to rethink its earlier order at a hearing next week, when Arch will present the loan for final approval. In court papers filed shortly after the company sought chapter 11 protection in January, Arch said that the loan is needed to fund its operations while in bankruptcy. Arch is continuing its mining activity and customer shipments throughout the reorganization process.
