Peabody Energy Corp. shares slumped 30% in premarket trade Wednesday, after the coal company raised ‘going concern’ issues in a regulatory filing. Peabody said it had a substantial loss from operations and negative cash flow in 2015 and it expects to continue to be loss-making this year. “These projections and other liquidity risks raise substantial doubt about whether we will meet our obligations as they become due within one year after the date of this report,” said the filing. Peabody has opted to exercise the 30-day grace period with respect to a $21.1 million interest payment due March 16 on its 6.50% notes due September 202, as well as a $50.0 million interest payment due March 16 on its 10% senior secured second lien notes due March 2022. The company is not officially in default until the end of that grace period. However, “as a result of these factors, as well as the continued uncertainty around global coal fundamentals, the stagnated economic growth of certain major coal-importing nations, and the potential for significant additional regulatory requirements imposed on coal producers, among other matters, there exists substantial doubt whether we will be able to continue as a going concern,” said the filing. Shares have tumbled 95% in the last 12 months, while the S&P 500 has lost just 3%.
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