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A leading federal regulator said yesterday that states should force coal companies to set aside collateral to pay for future mine cleanups and protect taxpayers as the industry braces for further declines, Reuters reported. Three of the largest U.S. coal producers, Peabody Energy, Arch Coal and Alpha Natural Resources, have filed for bankruptcy in the past year in an industry shaken by cheap natural gas and falling demand from China. With coal production outstripping demand, the market is not likely to recover until at least 2021, Joe Pizarchik, who heads the Office of Surface Mining and Reclamation Enforcement, told Reuters. Pizarchik's forecast is based on recent data from the U.S. Energy Information Administration that shows continued declines in capacity for coal-fired power plants for the next five years. This has raised concerns because the three bankrupt coal producers have not set aside cash to pay for roughly $2 billion in projected mine cleanups. Instead, they used a federal subsidy known as "self-bonding," which essentially exempts healthy companies from posting bonds or other securities to cover the cost of returning mined land to its natural setting. "We're moving as quickly as we can to help the states do their best to protect the taxpayers," Pizarchik said. "We want to give them the tools to ensure that mined land is reclaimed."

Logan’s Roadhouse Inc. filed for bankruptcy in Delaware after competition from rival casual-dining chains ate into its sales, Bloomberg News reported yesterday. The operator and franchiser of over 250 roadhouse-themed restaurants in 23 U.S. states has suffered as other companies offered steep discounts and improved technology with tabletop tablets and order-ahead capabilities. The Nashville, Tenn.-based chain tried to attract diners with Southern-inspired cuisine such as bread pudding, brisket nachos and glazed chicken wings, as well as Happy Hour deals, but revenue still fell 9.9 percent to $131.3 million in the quarter ended Oct. 28. Logan’s has entered into a restructuring support agreement with revolving facility lenders and holders of over 83.9 percent of about $378 million in notes that will reduce debt by over $300 million, Keith Maib, chief restructuring officer, said in court papers. The agreement also includes exit financing, Maib said.

U.K. yellow-pages company Hibu PLC is seeking help from a U.S. bankruptcy judge for a second time in two years, the Wall Street Journal reported on Saturday. A Hibu affiliate, YH Ltd., filed court papers on Wednesday seeking chapter 15 protection while it works to shed some £600 million ($785 million) in debt. If the request is approved by Judge Shelley Chapman, who is overseeing the case, Hibu would be temporarily shielded from distractions like lawsuits and other forms of creditor interference in the U.S. Hibu maintains a substantial presence in the U.S. but much of its debt, issued by YH Ltd., and its corporate leadership is based in the U.K., where the company sought the equivalent of chapter 11 protection earlier this year. A hearing on its chapter 15 petition, which aims for formal U.S. recognition of the U.K. proceeding, is scheduled for Sept. 7 in U.S. Bankruptcy Court in Manhattan.

Goodrich Petroleum Corp. received conditional approval Thursday evening of a new $40 million exit financing package, putting the oil and gas producer back on course to restructure its assets, the Wall Street Journal reported on Saturday. Bankruptcy Judge Marvin Isgur approved the financing commitment, conditioned on Goodrich reaching a deal with unsecured creditors, resolving their objections, by Friday at 5 p.m. CT. If no deal is reached, the approval will be withdrawn and Judge Isgur will hold a full hearing on the financing. The unsecured creditors’ committee had objected specifically to the fees associated with the financing, adding that the restructuring agreement Goodrich plans to put forth is both “coercive” to unsecured creditors and “too rich for other parties.” Judge Isgur said he agreed with the unsecured creditors’ position on the fees and signaled that he wouldn’t approve the financing unless the objection from unsecured creditors was resolved. Rather than address the fee issue directly, Goodrich is near a deal with unsecured creditors that involves improved treatment under Goodrich’s bankruptcy-exit plan, in exchange for the committee’s agreement to pull their objection.

The assets of Tucson, Ariz.-based artificial heart maker SynCardia Systems will go on the bankruptcy auction block Sept. 14, after the company won court approval of the auction despite the objections of creditors and a case trustee, the Arizona Daily Star reported on Saturday. Bankruptcy Judge Mary F. Walrath signed the order approving the auction on Friday, finding that SynCardia “articulated good and sufficient business reasons” to approve the auction. The judge did delay the process, after a committee of unsecured creditors and the U.S. Trustee in the chapter 11 case complained that the auction timetable was too short. SynCardia and its proposed buyer had proposed holding an auction Aug. 19 and a hearing to approve the winning bidder on Aug. 22, contending a quick sale was needed to keep SynCardia afloat. Judge Walrath ordered the auction to be conducted on Sept. 14 and the hearing to approve the sale to the highest bidder to be held on Sept. 16.

Golfsmith International, the retailer of golf clothing and equipment, is considering filing for bankruptcy as it looks for a new owner, Bloomberg News reported yesterday. Golfsmith hired the investment bank Jefferies LLC to solicit buyers for the roughly 150-store chain, without success so far. The company also hired Alvarez & Marsal to help it restructure, according to sources, who said that a sale could come as part of a chapter 11 filing. The Austin, Texas-based chain is the latest casualty of a struggling golf industry, which hasn’t recovered from a downturn in U.S. participation over the past decade. Nike Inc. announced on Wednesday that it would no longer sell equipment for the sport, and Adidas AG is trying to offload most of its golf brands.