Coal miner Foresight Energy LP said that it may file for chapter 11 protection if it does not reach an out-of-court restructuring agreement with its lenders, Reuters reported today. The company, which said its auditors have raised going concern doubts, suspended its quarterly distribution to unitholders and its forecast for 2016, pending the negotiation with its lenders. Decreasing demand for coal, stricter environmental controls and increasing competition from natural gas have pushed four big coal miners, including second-largest U.S. miner Arch Coal, into bankruptcy protection over the past year. Peabody Energy Corp., the largest U.S. coal producer, said this month that its lenders are pushing to restructure its $6 billion debt through bankruptcy. Foresight Energy is in talks with a majority of the holders of its 2021 senior notes to resolve a litigation. The company said today that it had defaulted or may default on other debt agreements.
