Bloomberg reported that Arch Coal terminated a debt-exchange offer that it initiated almost four months ago as disputes among creditors helped derail the deal that would have enabled the struggling coal miner to slash its $5.1 billion debt load.
Bloomberg noted, citing a company statement, the decision was based on opposition from a lender group and a pending law suit, among other factors.
Bloomberg said some holders of Arch’s $1.95 billion senior loan have been trying to block the deal due to concerns that the new debt would dilute their collateral on their loan.