Arch expects its mining operations and customer shipments to continue uninterrupted throughout the Chapter 11 reorganization process, its chairman and CEO John W. Eaves said.

“After carefully evaluating our options, we determined that implementing these agreements through a court-supervised process represents the best way to solidify our financial position and strengthen our balance sheet,” he said.

“We are confident that this comprehensive financial restructuring will further enhance Arch's position as a large-scale, low-cost operator.”

Eaves said that since the market downturn, Arch has taken steps to enhance the efficiency of its operations and to strengthen its asset base.

“As a result, all of our operating segments were cash flow positive during the first three quarters of 2015,” he said.

“We will continue to provide our customers with exceptional service as we move through this process, while maintaining and further reinforcing our position as an industry leader in safety, environmental stewardship and productivity.”

The company believes it has sufficient liquidity to continue its normal mining activities and to meet its obligations in the ordinary course.

Arch had more than $600 million in cash and short-term investments as of January 11, 2016, and expects to receive $275 million in debtor-in-possession (DIP) financing from members of the ad hoc group of lenders on terms and conditions set forth in the DIP term sheet and DIP credit agreement filed with the Bankruptcy Court and contemplated by the restructuring support agreement among the company and the lenders.

Arch also expects that its securitization financing providers will continue the company's $200 million trade accounts receivable securitization facility, subject to customary conditions, which supports Arch's letters of credit program.