Leading global coal producer Peabody Energy said that its main creditors support a plan to wipe more than $5 billion of debt from its balance sheet and exit the largest energy-related U.S. bankruptcy this year, Reuters reported yesterday. Under a reorganization plan filed with the U.S. Bankruptcy Court in St. Louis, Peabody said that it expects to cut its debt to $1.95 billion from more than $8 billion when it emerges from chapter 11 in the second quarter of 2017. The company's plan contemplates a $750 million rights offering, a $750 million private placement and the issuance of new common stock. The company said that it has the support of the vast majority of its creditors. Peabody filed for bankruptcy in April.
