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Peabody Energy Settlement Approval Sought

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Peabody Energy filed with the U.S. Bankruptcy Court a motion for entry of an order (i) approving a settlement agreement with International Marine Terminal Partnership (IMT), Kinder Morgan Petcoke (KMP) and Kinder Morgan Operating “B” (KMO) and authorizing the assumption of certain amended agreements.

The settlement agreement, which was largely sealed, notes, “Parties hereby stipulate and agree that as of the date of this Settlement Agreement, there were no ‘defaults’ and/or ‘actual pecuniary losses’ resulting from any such defaults (as those terms are used in Bankruptcy Code Section 365(b)(1)) or other claims of non-performance under and/or with respect to the Agreements on the part of either KMP Parties, on the one hand, or Peabody, on the other, except for Peabody’s payment of that certain March 2017 Payment in the amount of $5,500,000 due and payable on March 31, 2017 under paragraph 1 of the 2016 Amendment (the ‘Unpaid True Up Obligation’).”

The Court scheduled a March 16, 2017 hearing to consider the settlement, with objections due by March 9, 2017.

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