Arch Coal Inc. joined the ranks of bankrupt coal miners as the U.S. continues to shift toward cheaper, cleaner-burning natural gas, threatening the dominance of one of the world’s dirtiest sources of energy.
The holder of the second-largest reserve of coal in the U.S. filed for court protection Monday.
The company said it has an agreement with a majority of its lenders to erase $4.5 billion in debt from its balance sheet and allow it to keep operating without interruption.
Arch has been losing money since 2012.
“Over the past several years, a confluence of economic challenges and regulatory hurdles has hobbled the coal industry,” Arch Chief Financial Officer John T. Drexler said in a filing accompanying the Chapter 11 petition in St. Louis.