Wednesday, April 13, 2016

USA: Top Coal Company Goes Bust

The largest U.S. coal company just filed for bankruptcy (CNN Money)

Peabody Energy, the world's largest private-sector coal producer, filed for bankruptcy on Wednesday in a U.S. court, citing "unprecedented" industry pressures and a sharp decline in the price of coal.

The company said it will continue to operate while in bankruptcy, while working to reduce debt and improve cash flow.

The coal industry has faced a myriad of problems in recent years, including proposed regulation from the Obama administration to cut greenhouse gas emissions from the nation's coal-burning power plants. The industry refers to those regulations as Obama's "war on coal."

Renewable sources of energy are also getting much cheaper, further squeezing demand.

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