Arch Coal, Inc. secured a global settlement with certain of its senior secured lenders that hold more than 66 2/3% of its first lien term loan and the Official Committee of Unsecured Creditors (the "UCC"). The company has filed an amended Plan of Reorganization (the "Plan") that incorporates and implements the global settlement and a related Disclosure Statement with the United States Bankruptcy Court for the Eastern District of Missouri.
"The global settlement is a momentous achievement that should facilitate a timely and successful conclusion to our financial restructuring process," said John W. Eaves, Arch's chairman and CEO. "With this agreement, the path is now clear for Arch to move forward with our plan to position the company for long-term success – by strengthening our balance sheet, building upon our strong operational performance, and delivering on our unwavering commitment to safety and reclamation excellence. We are sharply focused on emerging from this court-supervised process in an expeditious manner, and as a stronger and more nimble player well-equipped to compete in a rapidly evolving marketplace."
"We want to recognize the tremendous contributions of Arch's workforce throughout this process. Through their dedication and hard work, our employees have enabled us to operate in an uninterrupted manner and continue to set the industry standard for safety and environmental performance," continued Eaves.
The full terms of the agreement are available in a Form 8-K that has been filed with the Securities and Exchange Commission.
A hearing to consider approval of the Disclosure Statement is scheduled for July 6, 2016. Following approval of the Disclosure Statement, the company intends to solicit creditor votes and seek the Bankruptcy Court's confirmation of the Plan on the timeline outlined in the Global Settlement Agreement.
Documents related to the reorganization proceedings are available on a website administered by Arch's claims and noticing agent, Prime Clerk, at https://cases.primeclerk.com/archcoal. Additional information about Arch's restructuring is available on Arch's website at www.archcoal.com/restructuring.
Davis Polk & Wardwell LLP is serving as legal advisor to Arch Coal, and PJT Partners is serving as financial advisor.
U.S.-based Arch Coal, Inc. is a top coal producer for the global steel and power generation industries, reliably serving customers worldwide.