Peabody Energy (BTU) Declares Bankruptcy

Soreide Law Group is actively filing cases on behalf of clients who purchased stock in the world's largest independent coal producer, Peabody Energy (BTU), on the recommendations of their brokers or financial advisors.  The clients we are currently representing have experienced devastating losses to their portfolios. Many of these clients planned on their investments in BTU to help secure their retirements.
Peabody Energy’s 52 week range was:  2.00 – 84.00
One month ago, the coal giant Peabody Energy (BTU), missed a debt payment and warned that it may have to file for bankruptcy.  On April 13^th., they filed.  According to the filing, Peabody Energy secured some financing and its operations will continue.  They claim they filed to ‘strengthen liquidity and reduce debt.’
While the company tried sounding upbeat, many analysts did not share their optimism. The analysts point out that in their final report of 2015, Peabody Energy had $6.3 billion of total debt, $249 million of mineral lease obligations and $723 million of unfunded pension liabilities. It also had future environmental remediation liabilities at $1.5 billion. But its earnings before taxes and depreciatiion was only $425 million last year and it was break even on a pure cash flow basis.
Most analysts feel that with the coal market is likely to remain depressed for the near future. An industry recovery is unlikely any time soon making valuing BTU’s bonds difficult. BTU’s senior unsecured notes represent little more than an option on what a potential coal market recovery may look like 3-5 years from now.
Peabody Energy followed other coal companies that have gone bankrupt due to lower coal prices as a result of an economic slowdown worldwide and increased environmental regulations, including Alpha Natural Resources, Patriot Coal, Walter Energy, JW Resources and Xinergy.
If you have suffered losses in Peabody Energy (BTU), or any of the now bankrupt coal companies, at the recommendation of your broker/dealer, call the Soreide Law Group for a free consultation with a lawyer on the possibility of recovering your financial losses at:  888-760-6552.