Peabody Energy Corporation (BTU) Warns Of Bankruptcy

Peabody Energy, the largest U.S. coal producer, warned Wednesday that there is substantial doubt about whether it will be able to continue as a going concern after it delayed an interest payment due on Tuesday. Peabody Energy’s disclosure in its regulatory filing comes a day after rival Foresight Energy LP also indicated that it may file for Chapter 11 bankruptcy if it doesn’t reach an out-of-court settlement with its creditors.

Peabody Energy’s stock plunged by over 95% in the past 12 months

U.S. coal miners are struggling as electric companies resort to cheaper and relatively cleaner options by using natural gas. Peabody Energy has posted a string of quarterly losses over the past...