Peabody Energy Corp has said it extended a deadline for creditors to join financing deals aimed at bringing the largest US coal miner out of bankruptcy amid growing creditor support for its plan of reorganisation.
Last week, Peabody unveiled its plan to eliminate more than $5bn of debt and raise capital from creditors with a $750m private placement and a $750m rights offering. The financing agreements were funded by key creditors that signed on to a plan support agreement with Peabody, although a portion of those deals were reserved for other noteholders if they agreed to back Peabody's plan by Wednesday. Peabody said a judge extended the deadline to January 6 for a group of large investors holding about $444m of the company's securities who had filed a lawsuit to halt the financing process.
Peabody this month took advantage of rising coal prices to seek court approval to repay a $500 m term loan ahead of schedule.
