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Conclusion <br />Peabody Energy is failing to address the fundamental point of this depressed market. If coal <br />prices have any chance of turning around, the company must use the primary tool it has in its <br />control: closing mines to drive down the supply of coal commensurate with market demand. <br />Instead, Peabody is trying to manage its debt problems by selling mines for cash to <br />competitors who will then further flood an already oversupplied market. Peabody's debt <br />management plans -asset sales, debt exchange and self -bonding cost control -will be <br />insufficient even if they are successful. <br />Until Peabody Energy acknowledges the price decline, establishes an action strategy to <br />address the difficult financial situation this creates, and acts on it, its financial condition will <br />continue to slip. <br />Pea body's Strategies for Survival Ignore Market Realities and Risk Backfiring 20 <br />