for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up
Energy

Foresight Energy LP says may file for Chapter 11 bankruptcy

(Reuters) - Coal miner Foresight Energy LP FELP.N said it may file for Chapter 11 bankruptcy if it does not reach an out-of-court restructuring agreement with its lenders.

The company, which said its auditors have raised going concern doubts, suspended its quarterly distribution to unitholders and its forecast for 2016, pending the negotiation with its lenders.

Decreasing demand for coal, stricter environmental controls and increasing competition from natural gas have pushed four big coal miners, including second-largest U.S. miner Arch Coal ACIIQ.PK, into bankruptcy protection over the past year.

Peabody Energy Corp BTU.N, the largest U.S. coal producer, said this month that its lenders are pushing to restructure its $6 billion debt through bankruptcy.

Foresight Energy is in talks with a majority of the holders of its 2021 senior notes to resolve a litigation. The company said on Tuesday that it had defaulted or may default on other debt agreements.

Foresight Energy reported a net loss of $64.3 million, or 44 cents per limited partner unit, for the fourth quarter, compared with a profit of $31.1 million, or 22 cents per limited partner unit, a year earlier.

Revenue for the quarter ended Dec. 31 fell 19.5 percent to $241.7 million. Volumes sold fell more than 6 percent to 5,890 tons.

Shares of Foresight Energy have fallen more than 86 percent in the past 12 months.

Reporting by Arathy S Nair in Bengaluru; Editing by Don Sebastian

for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up