Arch Coal's (ACIIQ) Amended Plan of Reorganization Confirmed by Court; Plans to Emerge from Bankruptcy Within Weeks

September 13, 2016 1:57 PM EDT
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Arch Coal, Inc. (OTC: ACIIQ) announced that, just over eight months after filing for Chapter 11, the United States Bankruptcy Court for the Eastern District of Missouri has confirmed its Amended Plan of Reorganization (the "Plan"). Arch expects to emerge from bankruptcy in early October.

"The Court's confirmation of our Plan is the final legal step in our successful financial restructuring," said John W. Eaves, Arch's CEO. "We will emerge as a strong, well-positioned natural resource company with a compelling plan for value creation. We have accomplished a great deal through the restructuring process and are confident that we have established a solid foundation for long-term success, built on our strong metallurgical and thermal franchises and our core commitment to safety and environmental excellence. We thank our customers and vendors for their important support, as well as our employees for their great dedication to Arch."

The Plan, which received overwhelming support from Arch's creditors, incorporates and implements the terms of a global settlement agreement the company reached with certain of its senior secured lenders and the Official Committee of Unsecured Creditors (the "UCC"). The Plan eliminates more than $4.7 billion in debt from Arch's balance sheet, significantly enhancing the company's financial flexibility.

"We appreciate the cooperation of our lenders and creditors, as well as their advisors, who worked constructively with us to complete Arch's financial restructuring in an expeditious and efficient manner," Eaves said.

Davis Polk & Wardwell LLP is serving as legal advisor to Arch Coal, and PJT Partners is serving as financial advisor.

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