Peabody Energy Corporation (BTU)

[LouisDesyjr]

$BTU bk coming? Probably

They just missed interest payments, recently drew down all of the available credit on their credit line, and the 10K has 'going concern' language in it.

I expect on or before the 30 day grace period ends(April 16, 2016) for making the interest payment that BTU will file for chapter 11 bankruptcy.

The way the bonds are trading, it looks like most classes do not expect to recover much, if anything.

Louis J. Desy Jr.

Disclosure: I own BTU Apr 22 2016 $2 puts and BTU Jun 2016 $0.50 puts.