Peabody Energy Corp.’s plan to emerge from chapter 11 bankruptcy faces a "material risk" that the U.S. coal producer could suffer a $1 billion revenue loss due to a disputed lease at the world's largest coal mine, according to an objection filed to its reorganization plan, Reuters reported yesterday. The plan by Peabody, the world's largest private-sector coal company, to cut $5 billion of debt and emerge from bankruptcy in April is supported by most of its creditors, but has faced a series of official objections from other parties. Oil and gas driller Berenergy Corp. and Peabody hold overlapping federal mineral leases in Wyoming's Powder River Basin, where Peabody operates the North Antelope Rochelle mine that provides the bulk of its coal production. In October a Wyoming District Court ruled that Peabody was entitled to mine through Berenergy's wells as long as it made certain payments to the oil and gas company. An appeal is pending before the state's Supreme Court.
