After failing to make an interest payment Tuesday, industry analysts say one of Wyoming’s largest coal companies is one step closer to potentially declaring bankruptcy. Arch Coal invoked the 30-day grace period on its $90 million payment, saying it will use that time to continue “constructive discussions with various creditors.”
The delay comes on the heels of an announcement last week that the New York Stock Exchange is planning to de-list Arch if it can’t improve its financials. The exchange requires companies to meet certain criteria in order to be listed, including a market value of more than $50 million. At the close of trading Tuesday, the company was valued at $19 million.
Arch Coal’s Black Thunder mine near Gillette is the second largest in the country, but the company has struggled during the downturn in the coal market.
Arch posted a $2 billion loss in the third quarter.