Cloud Peak Energy Inc. (fka CLDPQ)

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Coal Mining Company Cloud Peak Energy Files for Chapter 11 -- Update

3:18 pm ET May 10, 2019 (Dow Jones) Print
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By Patrick Thomas

Coal mining company Cloud Peak Energy Inc. (CLDP) has filed for chapter 11 bankruptcy protection in Delaware and plans to sell its assets, the company said Friday.

Cloud Peak's bankruptcy intentions were reported by The Wall Street Journal earlier this week. The Gillette, Wyo., company failed to make two interest payments on two separate notes and entered into a forbearance agreement with a bondholder group that was extended to Tuesday. The company had previously warned that a bankruptcy filing was possible.

The company, which has faced lower demand for its coal in recent years, recently slashed its 2019 estimates for earnings and cash flow.

Cloud Peak said Friday it intends to continue a marketing process for its assets, and expects its mines will continue normal operations throughout the bankruptcy process.

Cloud Peak said lenders have committed to provide about $35 million in debtor-in-possession financing. The financing, along with Cloud Peak's cash on hand and funds generated from ongoing operations, are expected to provide sufficient liquidity to continue operating during the sale process, it said.

"Over the past several months, Cloud Peak Energy has thoroughly evaluated strategic alternatives to address the challenging market conditions in our industry," Chief Executive Colin Marshall said in prepared remarks. "We believe, at this time, that a sale process in Chapter 11 will provide the best opportunity to maximize value for Cloud Peak Energy."

-- Josh Beckerman contributed to this article.

Write to Patrick Thomas at [e-mail]

(END) Dow Jones Newswires

May 10, 2019 15:18 ET (19:18 GMT)

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