Peabody Energy filed with the U.S. Bankruptcy Court a second motion to extend the exclusive period during which the Company can file a Chapter 11 plan and solicit acceptances thereof through and including February 13, 2017 and March 17, 2017, respectively.
The motion explains, “The Debtors’ 153 chapter 11 cases and their attendant complexities alone justifies an extension of the Exclusive Periods. The Debtors also have a complex capital structure with (a) approximately $4.3 billion of secured obligations (including a $1.65 billion revolving credit facility and a $1.2 billion term loan facility); and (b) $4.5 billion in unsecured indebtedness distributed among five series of notes and, among other things, capital leases….For the last five months, the Debtors have been participating in mediation on the Plan and CNTA Dispute. In the last month, the Debtors have engaged in multi-day, in person negotiations with, among other, the First Lien Lenders, the Creditors’ Committee, the Second Lien Noteholders’ Group and the Ad Hoc Noteholders regarding the terms of the Plan.”
The motion continues, “These parties have made considerable progress toward a consensual Plan. The Debtors currently intend to file a Plan by December 14, 2016, but seek an extension of their Exclusivity Periods in an abundance of caution….To the contrary, the Debtors are requesting an enlargement of the Exclusivity Periods to build upon the positive momentum generated thus far in these cases and to further facilitate – and hopefully finalize – negotiations on the Plan. Thus, creditors will not be hurt because the relief requested will not result in a delay of the Plan formulation process; rather, it will simply permit the process to move forward in an orderly fashion and encourage the filing of a consensual Plan.” The Court scheduled a December 14, 2016 hearing to consider the motion, with objections due by December 7, 2016.
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