To avoid default, the St. Louis-based producer elected to exercise a 30-day grace period with the holders of its 9.875% senior notes due 2019 as well as 7% and 7.25% senior notes due 2019 and 2021, respectively.

“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,” the company said December 15, adding that it will use the time to continue “constructive discussions” with creditors and put a plan into place to restructure its balance sheet.

Arch also noted that it currently has sufficient liquidity to continue normal mining operations as well as to meet its other obligations. As of September 30, it reported approximately $694.5 million in cash and short-term investments.

“Arch’s operations are strong and reflect the actions it has taken to adapt to rapidly evolving coal markets, including reducing costs and enhancing efficiency across the company,” officials said.

On December 10, the company announced that it had fallen out of compliance with the continued listing standards for the New York Stock Exchange (NYSE) because its average equity market capitalization was less than $50 million over a consecutive 30-trading-day period.

It will now undergo a series of regulatory steps with the NYSE to remain listed, including the submission of a compliance plan. If that plan is not accepted, Arch could be suspended and delisted from the stock exchange.