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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.

AtopTech Inc., the once-promising vendor of place-and-route electronic design automation (EDA) software, announced that it filed for chapter 11 protection and expects to be sold after losing a long-running legal battle with leading EDA vendor Synopsys Inc., EE Times reported on Friday. ATopTech, which is privately held, announced that it filed a motion with the bankruptcy court to sell its business and has selected a stalking-horse bidder. It said that it expects a bankruptcy auction to take place in mid-March and that the sale will be completed by March 31. The company said that it expects to continue to manage and operate its business under the jurisdiction of the U.S. Bankruptcy Court for the District of Delaware until the sale.

A U.S. bankruptcy court judge granted Avaya Inc. approval on Friday to tap $425 million of the $725 million loan proposed to carry the telecommunications company through its restructuring, funds the company said were essential to continue operations, Reuters reported. Avaya filed for chapter 11 protection on Thursday to cut its debt of about $6 billion after efforts to sell its call center business and reach a consensual deal with creditors failed. The company's lawyers said a significant portion of the $725 million loan, extended by an affiliate of Citigroup Inc. for up to a year, was funded by Avaya's existing lenders. Avaya plans to return to bankruptcy court today for approval on other expenses.