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debt exchange will succeed in preventing bankruptcy, noting that similar exchanges did not
<br />prevent Arch Coal and other companies from recently filing for bankruptcy.9
<br />More recent reports have further highlighted Peabody's precarious financial status.
<br />According to the Wall Street Journal, the company is drawing down a $1.65 billion revolving
<br />loan to secure cash, an indication of impending bankruptcy. 10 And most recently, Peabody's
<br />attempts to sell its Colorado and New Mexico assets to Bowie Resource Partners has apparently
<br />stalled out.l 1 Upon information and belief, if Peabody cannot sell its Colorado and New Mexico
<br />assets, it cannot complete its proposed debt exchange.
<br />III. _ _PEABODY'S SELF BONDING IN COLORADO, NEW MEXICO. AND
<br />WYOMING
<br />Peabody Energy reports the company self -bonds a total of $1,361,400,000 in reclamation
<br />obligations across all of its operations, although this number is likely currently higher. 12 The vast
<br />majority of these self -bonding obligations are for the company's permitted coal mines in the
<br />states of Colorado, New Mexico, and Wyoming. According to a 2014 survey by the Interstate
<br />Mining Compact Commission, Peabody self -bonds a total of $1,106,718,756 in these states,
<br />covering mining and reclamation operations at five mines in Colorado, two in New Mexico, and
<br />five in Wyoming. 13 See Table below.
<br />Although all indications are that Peabody Energy no longer qualifies for self -bonding
<br />pursuant to SMCRA regulations, the company has not notified regulatory authorities in these
<br />9 Desjardins, D., "Peabody Energy is the Next Coal Company to go Bankrupt," Seeking Alpha (Jan. 28, 2016),
<br />available online at http://seekinaali)ha.c_om/article/3841246-i)eabodv-ener2v-next-coal-comt)anv-8o-bankrupt.
<br />Attached as Exhibit 5.
<br />10 Jarzemsky, M., "Peabody Energy to Draw Down Rest of $1.65 Billion Revolving Loan," Wall Street Journal
<br />(Feb. 10, 2016), available online at http://www.wsi.com/articles/peabody-energyy-to-draw-down-rest-of-1-65-billion-
<br />revolving-loan-1455147340. Attached as Exhibit 6.
<br />' 1 Davis, M., S. Nataraj an, and T. Loh, "Peabody Mine Sale Said to Hit Snag as Bowie Stalls on Financing,"
<br />Bloomberg Business (Feb. 20, 2016), available online at http://www.bloomberg.com/news/articles/2016-02-
<br />20/peabody-mine-sale-said-to-hit-snag-as-bowie-pauses-on-financing. Attached as Exhibit 7.
<br />12 Supra. Note 4.
<br />13 Interstate Mining Compact Commission, "Self -bonding Survey," available at
<br />http://imcc.isa.us/Sell%2OBonding%2OSurvey.12df. Attached as Exhibit 8.
<br />Total Peabody Self-
<br />State
<br />bonding Obligations][
<br />Mines (Permit No.)
<br />Foidel Creek (C-1982-056), Sage Creek (C -2009 -
<br />Colorado
<br />$26,000,000
<br />087), Seneca (C-1982-057), Yoast (C-1994-082);
<br />Williams Fork (C-1981-044)
<br />New Mexico
<br />$290,4395433
<br />El Segundo (2015-01), Lee Ranch 19-2P
<br />Caballo (433-T7), North Antelope -Rochelle (569 -
<br />Wyoming
<br />$790,279,323
<br />T8), Rawhide (240-T7), School Creek (764-T2),
<br />Shoshone I (477-T7)
<br />TOTAL
<br />$1,106,718,756
<br />Although all indications are that Peabody Energy no longer qualifies for self -bonding
<br />pursuant to SMCRA regulations, the company has not notified regulatory authorities in these
<br />9 Desjardins, D., "Peabody Energy is the Next Coal Company to go Bankrupt," Seeking Alpha (Jan. 28, 2016),
<br />available online at http://seekinaali)ha.c_om/article/3841246-i)eabodv-ener2v-next-coal-comt)anv-8o-bankrupt.
<br />Attached as Exhibit 5.
<br />10 Jarzemsky, M., "Peabody Energy to Draw Down Rest of $1.65 Billion Revolving Loan," Wall Street Journal
<br />(Feb. 10, 2016), available online at http://www.wsi.com/articles/peabody-energyy-to-draw-down-rest-of-1-65-billion-
<br />revolving-loan-1455147340. Attached as Exhibit 6.
<br />' 1 Davis, M., S. Nataraj an, and T. Loh, "Peabody Mine Sale Said to Hit Snag as Bowie Stalls on Financing,"
<br />Bloomberg Business (Feb. 20, 2016), available online at http://www.bloomberg.com/news/articles/2016-02-
<br />20/peabody-mine-sale-said-to-hit-snag-as-bowie-pauses-on-financing. Attached as Exhibit 7.
<br />12 Supra. Note 4.
<br />13 Interstate Mining Compact Commission, "Self -bonding Survey," available at
<br />http://imcc.isa.us/Sell%2OBonding%2OSurvey.12df. Attached as Exhibit 8.
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