Peabody Energy

About Peabody Energy

Peabody Energy, the largest private sector coal company in the world, filed for Chapter 11 bankruptcy on April 13, 2016. Peabody had 10 billion in debt, much of it from the 2011 acquisition of MacArthur Coal for 5.2 billion. Coal prices had fallen dramatically. The Obama administration Clean Power Plan threatened future coal demand. Peabody emerged from bankruptcy in April 2017 after eliminating 5 billion in debt. The restructuring gave equity to creditors. Peabody continued operating but faced declining demand as utilities switched to natural gas and renewable energy. In 2023, Peabody agreed to acquire steelmaking coal assets from Anglo American for 3.8 billion. The case illustrates the long term decline of the coal industry.