Peabody Energy Corporation (BTU)

[LouisDesyjr]

PPS didn't go up 03-31-2016

I would expect that is because there is no word what is going on with the 90 day deadline due to the going concern language in the 10K report.

I sent an email to the company asking if there is a grace period that applies or if they lender waived the 90 day default. I am looking to find out who the lender is so I can contact them also.

While not a big change in price, it did decline in yesterdays by $0.12 for 4.92% and yahoo is showing pretrading this morning down another $0.06 at 8:39am, but the volume is below the 3 month average volume is this may just be trading noise and not mean anything special.

Louis J. Desy Jr.


Disclosure: I own BTU put options

Link to 10K report as filed with SEC:
http://www.sec.gov/Archives/edgar/data/1064728/000106472816000157/btu-20151231x10k.htm


Section about 90 day deadline in 10K report:

Our 2013 Credit Facility and its related governing documents contain requirements (as more fully described under "Risks Associated with Our Indebtedness" below) that, among other things, require us to comply with certain financial covenants and furnish our audited financial statements as soon as available, but in any event within 90 days after the fiscal year end without a “going concern” uncertainty paragraph in the auditor’s opinion. Our consolidated financial statements for the year ended December 31, 2015 included herein contain a "going concern" uncertainty paragraph. In addition, we currently anticipate that our reported Adjusted EBITDA and other sources of earnings or adjustments used to calculate Consolidated EBITDA (if such other sources of earnings or adjustments do not include the proceeds of certain targeted asset sales) will fall below our Consolidated Net Cash Interest Charges during 2016, and we anticipate we will not comply with our financial covenants as of March 31, 2016. Absent waivers or cures, non-compliance with such covenants would constitute a default under the 2013 Credit Facility. As a result, all indebtedness under the 2013 Credit Facility could be declared immediately due and payable upon the occurrence of an event of default (after the expiration of any applicable grace period). It is possible we could obtain waivers from our lenders; however, the aforementioned projections and certain liquidity risks raise substantial doubt about whether we will meet our obligations as they become due within one year after the date of issuance of this report.