Peabody Energy Corporation (BTU)

[LouisDesyjr]

They may file BK on April 1, 2016

I reread the 10K report for Dec 31, 2015. It looks like the 'going concern' language and EBITDA falling below minimum required amounts, may mean that BTU will default on March 31, 2016.

While there is a 30 day grace period on paying interest that was due on March 15, 2016 to April 15, 2016; it looks like the bank line will be in default on March 31, 2016 and that will trigger a cross default on other debt series.

10K for period ending 12-31-2015:
http://www.sec.gov/Archives/edgar/data/1064728/000106472816000157/btu-20151231x10k.htm

While it is possible that BTU cold get a waiver, there were earlier reports that some of the bond holders wanted BTU to file BK, so they would probably not give any kind of a waiver.

Louis J. Desy Jr.


Disclosure: I own BTU put options, and may buy 04/01/2016 puts.