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Case 16-42529 Doc 23 Filed 04/13/16 Entered 04/13/16 11:20:44 Main Document <br />Pg 7 of 32 <br />bonding programs maintained by certain states in which the Debtors operates Pursuant to the <br />Self -Bonding Privileges, each applicable Debtor has issued one or more bonds to secure that <br />Debtor's Reclamation Obligations, and each such bond is supported by a guarantee issued by <br />Debtor Peabody Investments Corp. In certain circumstances, the applicable states' self -bonding <br />programs allow for or require adjustments in the amount in which the Debtors are authorized to <br />self -bond. As of March 31, 2016, the Debtors are authorized, pursuant to their Self -Bonding <br />Privileges, to self -bond in the applicable states with respect to approximately $1.15 billion in <br />aggregate Reclamation Obligations. If the Debtors lose their current Self -Bonding Privileges, <br />they would be required to secure their Reclamation Obligations in another manner, possibly by <br />obtaining additional Third -Party Surety Bonds. <br />16. It is essential to the Debtors' operations that they maintain their Surety <br />Bond Program on an ongoing and uninterrupted basis. The non-payment of obligations under <br />the Surety Bond Program could result in one or more of the Issuers attempting to terminate, <br />declining to renew or refusing to enter into Third -Party Surety Bonds with the Debtors in the <br />future, or one or more Governmental Authorities seeking to terminate the Debtors' Self -Bonding <br />Privileges. If any Surety Bonds lapse without renewal, or if the Debtors are unable to self -bond <br />or obtain new Third -Party Surety Bonds for certain purposes, the Debtors could default on <br />various obligations, which could severely disrupt the Debtors' operations and impair the Debtors' <br />prospects for a successful reorganization to the detriment of all parties in interest. Moreover, any <br />failure by the Debtors to maintain their Third -Party Surety Bonds or continue the self -bonding <br />required to secure certain specific obligations, such as the Debtors' reclamation obligations or <br />pursuant to their workers' compensation insurance programs, could cause the Debtors to default <br />The Debtors enjoy Self -Bonding Privileges to Illinois, Indiana, New Mexico and Wyoming. <br />-7- <br />001KC0001 PRINT RFV 75912-11 DOMFRTIC 16671/00("S/M11a9 <br />