Laserfiche WebLink
Case 16-42529 Doc 32 Filed 04/13/16 Entered 04/13/16 11:43:47 Main Document <br />Pg3of21 <br />years due to the rise of low priced alternative energy sources — including an abundance of natural <br />gas. Combined with these factors, slowing global economic growth drove a wide range of goods <br />prices lower in 2015 and resulted in the largest broad market decline since 1991. Indeed, <br />demand from electric utilities in the United States alone declined approximately 110 million tons <br />in 2015. These market conditions, in connection with lower realized pricing in the United States <br />and Australia, resulted in a 2 1. 0 million ton decline in the Debtors' and their non -debtor <br />subsidiaries' coal sales during 2015. As a result of these challenges, several large United States <br />coal companies have filed for chapter 1 I protection in recent years. <br />6. A comprehensive description of the Debtors' businesses and operations, <br />capital structure and the events leading to the commencement of these chapter 11 cases can be <br />found in the Declaration of Amy Schwetz, Executive Vice President and Chief Financial Officer <br />of Debtor PEC, in Support of First Day Pleadings of Debtors and Debtors in Possession <br />(the "First Day Declaration"), which was filed contemporaneously herewith and is incorporated <br />herein by reference. <br />The Debtors' Clearing Activities <br />7. In addition to mining operations, the Debtors and their non -Debtor affiliates <br />market and broker coal from other coal producers, both as principal and agent, and trade coal and <br />freight related contracts through trading and business offices in Australia, China, Germany, India, <br />Indonesia, the United Kingdom and the U.S (the "Trading and Brokerage Business"). Coal <br />brokering is conducted both as principal and agent in support of various coal production -related <br />activities that may involve coal produced from the company's mines, coal sourcing arrangements <br />with third -party mining companies or offtake agreements with other coal producers. The Trading <br />and Brokerage segment also provides transportation -related services, which involve both <br />financial derivative contracts and physical contracts. <br />-3- <br />