This extends the time period the company has to make the approximately $US90 million interest payment due December 15, 2015 without triggering an event of default under the indentures.
Arch intends to use the 30-day grace period to continue discussions with various creditors regarding its ongoing effort to develop and implement a comprehensive plan to restructure its balance sheet.
“Events of default will exist under the company's term loan facility and receivables facility as a result of this election and other recent events, but the company is in active discussions with its lenders and does not anticipate the lenders taking any remedial action in respect of any such event of default,” Arch said in a statement.
“The company has sufficient liquidity to continue normal mining operations and to meet its obligations in the ordinary course, and it intends to continue providing customers the same high quality services they expect from Arch.”
The company had approximately $694.5 million in cash and short term investments as of September 30, 2015. Arch's operations reflect the actions it has taken to adapt to rapidly evolving coal markets, including reducing costs and enhancing efficiency across the company, it said.
