Peabody Energy Corporation (BTU)

[LouisDesyjr]

Appeals after confirmation of plan

Most of the time, appeals of the confirmation of the plan are a waste of time and money because the equity is so far negative that it is hopeless. Here there are all kinds of questions as to what is going on, especially with the management share in the new plan.

One way that I suggested that would eliminate these problems is that any class that would not get made whole in a Chapter 11 plan, is that they get issued warrants that would have value once all other classes in higher priority would be paid off at 100%. That way is there really is value, all the higher classes would get paid off at 100%, and then they would get the value above that.

Of course, anyone benefiting by not doing such a thing would not want such a plan since by extinguishing all of the lower priority rights, the higher priority classes get the value of them.

Louis J. Desy Jr.