First-day motions to help facilitate Peabody Energy’s continued operations while the company operates under Chapter 11 protection were approved by Judge Barry S. Schermer of the U.S. Bankruptcy Court for the Eastern District of Missouri.

The court’s approvals affirmed on an interim basis the $800 million in debtor-in-possession (DIP) financing facilities by a lender group led by Citigroup that includes participation of a number of the company’s secured lenders and unsecured noteholders.

Those facilities include a $500 million term loan, of which $200 million is now available to the company, a $200 million bonding accommodation facility and a cash-collateralized $100 million letter of credit facility.

The court will hold hearings in May to issue the final orders regarding Peabody’s first-day motions including the final approval of the DIP financing.

Previous stories on ABF Journal:
Peabody Files Chapter 11, Citigroup Arranges $800MM DIP
Fitch Cuts Peabody Long-Term IDR to “CC”
Peabody Lenders Said to Hire Law Firm for Debt Discussion