The largest privately-owned coal mining group in the world is the subject of the first foreign insolvency case to be dealt with in Gibraltar under the new legislation.
American coal giant Peabody Energy filed for Chapter 11 bankruptcy proceedings in April in a US court, citing “unprecedented” industry pressures and a sharp decline in the price of coal.
In its Chapter 11 documents, Peabody, which had revenue of $5.6 billion in 2015 and about 7,100 employees globally, named two companies as debtors.
One was the US parent, Peabody Energy Corp, the other a Gibraltar subsidiary, Peabody Holdings (Gibraltar) Limited.
Chapter 11 proceedings are a way in which potentially insolvent businesses and individuals in the US can propose to the US courts a plan of reorganisation to keep the business alive and pay creditors over time.
At a hearing at Gibraltar’s Supreme Court this week lawyers acting on behalf of Amy Schewtz – Executive Vice President and Chief Financial Officer of Peabody Energy – applied for recognition of those proceedings in respect of the locally-registered Peabody Holdings Gibraltar.
Two Gibraltar subsidiaries hold and control the company’s Australian assets. Australia is home to ten of Peabody’s 28 coal mines.
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