CNN: Peabody Energy, the world’s largest private-sector coal producer, warned early Wednesday it may go out of business, the latest sign of the brutal conditions in the battered industry.
Peabody reported a loss of $2 billion last year, up from a $787 million slide the previous year. Revenue tumbled 17% to $5.6 billion as the average price and amount of coal that it sold fell. It warned of further declines this year due to reduced use of coal by U.S. utilities along with lower demand from overseas markets.
New York Times: Peabody Energy Warns of Possible Bankruptcy Filing.
The world’s largest coal company, the Peabody Energy Corporation, warned on Wednesday that it might have to file for bankruptcy protection as it struggles to keep up with its debt payments.
Analysts have been warning for months that Peabody could follow the nation’s other large coal companies, like Arch Coal, Alpha Natural Resources and the Patriot Coal Corporation, into bankruptcy. The United States coal industry has been pummeled by tighter regulations and competition from cheaper sources of fuel, mostly notably natural gas.
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