US coal producer Arch exits Chapter 11

OREANDA-NEWS. October 06, 2016. Arch Coal has exited Chapter 11 bankruptcy protection with just a fraction of the debt it had going in.

The second-largest US coal producer based on volume is exiting its restructuring with \\$363mn in debt, just 7pc of what it had when it filed for Chapter 11 in January. It has \\$300mn cash on its balance sheet.

Arch is exiting Chapter 11 at a better time for the industry than which it had entered. Metallurgical coal prices have soared in recent weeks amid steady demand in Asia and concerns about tight supply. Thermal coal markets in the US are also turning around.

"I am confident we have all the pieces in place for long-term success," chief executive John Eaves said. "We are particularly pleased to be emerging in a resurgent metallurgical market, and look forward to similar strengthening in thermal coal markets in the months ahead."

Arch is the largest US metallurgical coal producer in the US.

The company expects to have "modest" cash requirements in the near future, including \\$55mn of capital spending in 2017 and projected debt service of \\$33mn. It will resume trading on the New York Stock Exchange under a new ticker symbol ARCH.