Peabody Coal in Bankruptcy Threat, Again

November 9, 2020

Fade to black.

Financial Times (paywall):

Peabody Energy, the world’s largest private sector coal producer, said there was a risk it could go bankrupt for the second time in five years, as it raced to renegotiate debts in the wake of tumbling demand for the fossil fuel

The New York-listed miner is at the centre of upheaval in energy markets as natural gas and renewables replace coal on the North American power grid. The economic fallout of coronavirus has also sapped demand for coal used in steelmaking, an important market for Peabody’s Australian operations.  St Louis-based Peabody shed $5.2bn in debt while in bankruptcy court in 2016-17, leaving hedge fund Elliott Management, a former debt holder, as its largest shareholder.  Yet the company is again struggling to meet its debt obligations, according to filings. 


3 Responses to “Peabody Coal in Bankruptcy Threat, Again”

  1. doldrom Says:

    And ex-miner’s pensions will again be the first victims.
    Apparently there is no way in America to vest the benefits of colliers who have acquired lung emphysema through their toils in a way that does not revictimize them at the vagaries of their capitalist overlords when they are infirm and slipping away.

    • rhymeswithgoalie Says:

      Nerd note: On top of “traditional” black lung, shaft mining on diminishing seams means more silicate (i.e., non-coal) dust in workers’ lungs. Younger miners are turning up with silicosis.

      • J4Zonian Says:

        Pneumonoultramicroscopicsilicovolcanoconiosis, to be precise.

        @ doldrum
        There is a way to avoid having the economic fallout of the collapse of the fossil fuel industry fall on the workers and other even more innocent people: Nationalizing the industry to shut it down in coordination with building efficiency, wiser lives, and clean safe renewable energy to replace it. Equalizing economically and politically. A guaranteed income for everyone, at a comfortable level. Free education.

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