Shareholders Seek Peabody Energy Reorganization Stakes
Shareholders of bankrupt Peabody Energy Corp will seek this week to be part of a reorganized company whose prospects have brightened after a recent surge in coal prices and its stock, Barron's reported in its Sunday issue.
Hedge fund Mangrove Partners said in December that shareholders should get part of any valuation above the $7.8 billion owed Peabody's creditors during a scheduled hearing on Thursday before U.S. Bankruptcy Judge Barry Schermer in St. Louis, according to Barron's.
Peabody said in a statement on Sunday that attempts to appoint an equity committee in the bankruptcy proceedings have generated inaccuracies in the media.
Peabody said it has been consistent and transparent for many months in communicating that, as with most Chapter 11 bankruptcies, current equity holders are unlikely to receive any value and their shares are likely to be canceled.
Peabody said last week that a group of banks has pledged a combined $1.5 billion in loans to help the coal producer exit bankruptcy in the coming months.
Peabody shares rose 9.7 percent on Friday to close at $4.92.
Reporting by Herbert Lash
