A one man wrecking crew–
Barack Obama promised to bankrupt the coal industry during the 2008 campaign.
“So if someone wants to build a coal-powered plant, they can. It’s just that it will bankrupt them.”
Today the world’s largest coal producer declared bankruptcy.
They can thank Barack Obama.
Peabody Energy, the world’s largest private-sector coal producer, filed for bankruptcy on Wednesday in a U.S. court, citing “unprecedented” industry pressures and a sharp decline in the price of coal.
Advertisement - story continues below
The company said it will continue to operate while in bankruptcy, while working to reduce debt and improve cash flow.
“Peabody has a new management team, outstanding workforce, unmatched asset base and strong underlying operational performance that represent a key driver in the company’s future success,” CEO Glenn Kellow said in a statement announcing the Chapter 11 filing.
In addition to plummeting coal prices, the company cited weakness in China’s economy, overproduction of domestic shale gas and ongoing regulatory challenges as reasons for its declining prospects.
Peabody reported a loss of $2 billion last year. Revenue tumbled 17% to $5.6 billion as the average price and amount of coal that it sold fell. It warned of further declines this year due to reduced use of coal by U.S. utilities, along with lower demand from overseas markets.