Arch Coal Files for Bankruptcy

The Wall Street Journal reported that Arch Coal (NYSE:ACI) joined a growing group of US coal producers that have filed for chapter 11 bankruptcy protection. The move comes as the company attempts to cut down roughly $4.5 billion in debt.
As quoted in the publication:

The St. Louis-based company said it had a restructuring agreement with lenders that hold more than 50% of its $1.9 billion in first-lien debt, one that offers some recovery to unsecured creditors.
In broad outline, Arch is proposing a debt-for-equity swap that would leave most of the company in the hands of the first-lien lenders, while unsecured creditors owed billions would be offered options, including a share of 4% of the equity in the reorganized coal company.

Click here for the full press release.