Bowie Resource Partners is scrapping a loan sale that would’ve funded its purchase of mines from Peabody Energy Corp., jeopardizing a deal that would help stave off a Peabody bankruptcy filing, Bloomberg News reported yesterday. The company dropped the $650 million financing after getting a cool reception from investors. Bowie had put the loan deal on hold last month and was seeking to renegotiate the terms of the purchase. The asset sale was critical to Peabody, which has until April 14 to make an overdue interest payment. The largest U.S. coal miner, which has been ravaged by the coal market’s worst downturn in decades, this month said it may not be financially strong enough to remain in business in its current form and may seek bankruptcy protection.
