In a recent U.S. Securities and Exchange Commission (SEC) filing, Arch — which filed for Chapter 11 bankruptcy in January — said it can handle $485 million in unsecured reclamation liabilities.
While it is not yet known if Arch will need to self-bond, Arch reportedly said June 14 that it was in negotiations with regulators in Wyoming over the issue.
“The debtors are continuing to work with the state of Wyoming to re-evaluate their bonding liability and to determine the extent to which the debtors will be permitted to self-bond upon the effectiveness of the plan. The debtors believe that they have the financial resources to obtain such third-party financial assurances if necessary,” the company wrote, according to the Casper Star Tribune.
Arch spokesperson Logan Bonacorsi said that, as the proceedings of their case move forward, the company is hoping to gain better insight into the issue.
“We are committed to having the necessary financial assurances in place to meet state requirements on our reclamation obligations,” she said.
The St. Louis-based operator had previously said in its bankruptcy documentation that having to replace any self-bonding monies would impact its liquidity and potentially keep it coming out of Chapter 11. A February deal the company signed to cover $85 million of its obligations lasts only as long as its bankruptcy case.
