Foresight Energy filed for bankruptcy with plans to hand ownership to its creditors, becoming the latest coal company to fail as power generators switch to cleaner and cheaper fuels.
The filing in US Bankruptcy Court for the Eastern District of Missouri is another sign that efforts to stem coal’s decline aren’t working. A wave of US miners have filed for Chapter 11 in recent years, including Murray Energy, which owns a controlling stake in Foresight. Its owner, Robert Murray, is an outspoken supporter of President Donald Trump, who has pledged to save the industry.
Foresight listed between $1-billion to $10-billion in assets and liabilities in the same range in Chapter 11 documents filed with the court. The restructuring plan, which allows the company to stay in business, would cut debt by about $1-billion by swapping $1.33-billion of debt for equity. The plan would leave Foresight with just $225-million in new secured debt, CEO Robert D. Moore said in a court declaration.
Moore, who is also the CEO of Murray Energy and is Robert Murray’s nephew, would remain the chairman of Foresight.