Bloomberg reported, according to a person with knowledge of the matter, a group of Peabody Energy’s senior lenders hired law firm Davis Polk & Wardwell to help protect the value of their assets as they anticipate the company will begin talks to restructure its $6.3 billion of debt.

Bloomberg said the creditors, who hold the troubled miner’s $1.17 billion first-lien term loan, are concerned that any proposal from the company would potentially dilute the value of the assets securing the debt.

Bloomberg noted that the lenders hired the firm after Peabody rival Arch Coal attempted a debt-exchange deal that would have helped cut its $5.1 billion of obligations while also diluting the assets of its backers.