Cloud Peak Energy announced on May 10 it filed voluntary petitions under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware. The company intends to continue a marketing process for all of its assets and expects its mines to continue operating throughout the process.
“Over the past several months, Cloud Peak Energy has thoroughly evaluated strategic alternatives to address the challenging market conditions in our industry,” said Colin Marshall, president and CEO of Cloud Peak Energy. “We believe, at this time, that a sale process in Chapter 11 will provide the best opportunity to maximize value for Cloud Peak Energy.”
In conjunction with the filing, and subject to court approval, Cloud Peak Energy has received a commitment for approximately $35 million in debtor-in-possession (DIP) financing from some of the company’s prepetition secured noteholders. It said it expects $10 million of the total DIP financing to be available on an interim basis. The DIP financing, combined with the company’s cash on hand and funds generated from ongoing operations, are expected to provide sufficient liquidity to continue operating during the sale process.
Headquartered in Wyoming, Cloud Peak Energy operates the Antelope and Cordero Rojo mines, located in Wyoming, and the Spring Creek mine, which is located in Montana. In 2018, Cloud Peak Energy sold approximately 50 million tons.