The Illinois attorney general has asked Peabody Energy Corp. in a letter to explain how it would cover $92 million in future cleanup costs in the state if the company sought bankruptcy protection, Reuters reported yesterday. Peabody, the country's largest coal producer, said in a regulatory filing last week that it may have to seek bankruptcy protection, citing poor economies in countries that import coal and other factors weighing on the coal industry. In an emailed statement, Peabody declined to comment on the specifics of the letter but said, "We see our land restoration as an essential part of the mining process, and take great pride in the work that we do." If the company did seek bankruptcy protection, a judge would decide how to prioritize liabilities like $92 million in future cleanup costs in Illinois that are not guaranteed by cash, bonds or other securities.
