Arch Coal (ARCH) Completes Chapter 11 Restructuring; Will Trade Under 'ARCH' on NYSE
- Wall Street dips on Trump protectionism, Qualcomm drag
- Yahoo! (YHOO) Tops Q4 EPS by 4c; Sees Verizon Deal Closing in Q2, Not Q1
- Aetna's (AET) Humana (HUM) Takeover Blocked by Judge as Anticompetative
- Trump signs order withdrawing U.S. from Trans-Pacific trade deal
- After-Hours Stock Movers 1/23: (REXX) (MRCY) (SYNC) Higher; (FSM) (OCUL) (CASC) Lower (more...)
Get inside Wall Street with StreetInsider Premium. Claim your 2-week free trial here.
Arch Coal, Inc. (NYSE: ARCH) announced that it has successfully completed its financial restructuring and emerged from court protection, with new equity that will trade on the New York Stock Exchange under the ticker symbol ARCH.
"Today marks the beginning of a new era for Arch Coal," said John W. Eaves, Arch's chief executive officer. "We are extremely pleased with what we have accomplished during our highly expeditious restructuring process, and are eager to move forward with our compelling plan for value creation. I am confident we have all the pieces in place for long-term success – an extraordinary workforce, cost-competitive assets, a high-quality reserve base, a clean balance sheet and an excellent management team."
Arch emerges as the leading producer of metallurgical coal and the second largest producer of thermal coal in the United States, with a streamlined portfolio of large, modern, low-cost mines. Arch's operations have a proven track record of generating cash through all phases of the market cycle, with significant upside in rising price environments.
Arch is emerging with more than $300 million of cash on its balance sheet and a debt level of just $363 million, consisting of a new term loan and capital leases. The company's total debt is just 7% of what it was prior to restructuring. Cash requirements are expected to be modest, with projected capital spending of $55 million in 2017 and projected debt service of approximately $33 million. In addition, the company has third-party surety bonds in place covering 100% of its reclamation bonding requirements.
"We are particularly pleased to be emerging in a resurgent metallurgical market, and look forward to similar strengthening in thermal coal markets in the months ahead," Eaves said. "With our enhanced financial foundation and top-tier assets, we believe we are exceptionally well-positioned to capitalize on both."
"We are enthusiastic about Arch's promising future and the potential to drive sustainable value creation for our shareholders," Eaves continued. "I would like to extend my deepest appreciation to Arch's employees, who have been instrumental in achieving this excellent outcome. Looking ahead, we will continue our efforts to manage costs rigorously, provide superior service to our customers and strengthen relationships with our business partners, while demonstrating the same unwavering commitment to mine safety and environmental protection that has become a hallmark of our great company."
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Overseas Shipholding Group (OSG) Reaches Agreement with SEC
- Ocular Therapeutix (OCUL) Commences Public Offering of Common Stock
- First Internet Bancorp (INBK) Names Nicole Lorch as COO
Create E-mail Alert Related CategoriesCorporate News, Hot Corp. News, Litigation, Trader Talk
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!