(Adds details and background)
Sept 13 U.S. coal miner Arch Coal won
court approval on Tuesday for a plan to eliminate $4.7 billion
of debt from its balance sheet, the company said, clearing the
path to emerge from bankruptcy in early October.
The second largest U.S. coal producer filed for Chapter 11
protection in January after a failed attempt to restructure with
bondholders out of court, joining a handful of other coal
companies who have been forced into bankruptcy during a harsh
Under a reorganization plan confirmed by U.S. Bankruptcy
Court in St. Louis on Tuesday, the company's senior lenders will
have control of most of the company.
"We will emerge as a strong, well-positioned natural
resource company with a compelling plan for value creation,"
Arch's CEO John W. Eaves said in a statement.
Arch supplies both domestic and international clients and
derives most of its coal from the high-performing Powder River
Basin in Wyoming.
(Reporting by Tracy Rucinski; Editing by Andrew Hay)