Seven-day reprieve for Powder River Basin coal producer Cloud Peak

first_img FacebookTwitterLinkedInEmailPrint分享Gillette News-Record:Already operating on borrowed time, Cloud Peak Energy Corp. borrowed a little more when it was granted another seven days forbearance on a $1.8 million interest payment originally due March 15.In a filing with the federal Securities and Exchange Commission on Wednesday afternoon, the Gillette-based thermal coal producer paints a grim picture that may be headed to Chapter 11 bankruptcy reorganization.“We will need to restructure our balance sheet in order to improve our capital structure, adjust our business to ongoing depressed Powder River Basin thermal coal industry conditions, address our significantly reduced liquidity and continue as a going concern,” the company says in the filing.In addition to securing a forbearance until May 7 for the $1.8 million payment on debt due in 2024, Cloud Peak said it won’t pay $17.4 million on its 2021 notes that was due Wednesday. Instead, the company is using a 30-day grace period for that debt, extending that interest payment out until May 31.Wednesday’s announcement may or may not mean the company has a deal in the works that could spare it having to file for Chapter 11 reorganization, said Robert Godby, director for the Center for Energy, Economics and Public Policy at the University of Wyoming.By first using the 30-day grace period and getting two forbearances after that, Cloud Peak “has made it pretty clear they’re not in a position to make that payment,” Godby said. “They’re also not in a position to make that other ($17.4 million) payment.”More: Cloud Peak gets another 7-day reprieve Seven-day reprieve for Powder River Basin coal producer Cloud Peaklast_img read more