Arch Coal offers reverse stock split

OREANDA-NEWS. July 22, 2015. Arch Coal plans to conduct a reverse stock split, as it tries to remain eligible for trading on the New York Stock Exchange.

At the close of business on 27 July, the company will convert 10 shares of common stock into one. That will cut the number of shares outstanding to 21.3mn from 213mn in a move the company will boost its share price. Arch will pay cash based on the value of the company's stock for any fraction of a share that shareholders would end up receiving in the exchange.

The NYSE warned Arch on 21 May that it was in danger of being delisted because the 30-day average for its share price had fallen below the \\$1 minimum requirement. The company said the following day that it was "taking steps" to resolve the deficiency. It has six months to regain compliance as long as it meets other listing standards.

Arch's shares were trading at 23?/share this afternoon, up by just over a penny from yesterday. The share price has averaged 41? since the exchange issued its warning.

Arch is among a number of coal producers whose stocks are suffering from the industry's weak market conditions. This month, the exchange has moved to delist Walter Energy, which entered Chapter 11 bankruptcy protection proceedings last week, and Alpha Natural Resources.