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The impact of low commodity prices has taken a steep toll on energy producers, particularly in the oil and coal businesses. According to Fitch Ratings, the energy industry’s default rate could reach 4% in August, more than double its historical 1.9% average, and the overall corporate default rate could reach 3%. Coal miner Alpha Natural Resources completed a distressed debt exchange in the first quarter of this year, but it filed for bankruptcy protection just four months later. Such an exchange indicates a subsequent default within one year in nearly two-thirds of cases, according to Fitch. Arch Coal Inc. (ACI) has already offer that expires Friday, and at last look, it was getting a lot of pushback from existing lenders who argue that the swap dilutes their claims on the company’s assets. That Arch’s share price was up about 8% could indicate that the company has or is expected to prevail. ALSO READ: The Next 11 States to Legalize Marijuana At the end of July, the overall corporate default rate for the trailing 12 months stood at 2.5%, up from 2.3% at the end of June. The trailing rate for energy companies stood at 2.5%, with the rate for exploration and production companies at 5%, and metals and mining companies’ rate at 7.1%. Excluding energy and mining sectors, the corporate default rate for July was 2.3%, and if the bankruptcy filing of Caesars Entertainment Operating Co. is also excluded the overall corporate rate was a “benign 1.1%,” according to Fitch. In addition to Arch Coal, oil producer SandRidge Energy Inc. (SD) Friday announced privately negotiated purchase and exchange agreements under which the company will repurchase $250 million in senior unsecured notes for $94.5 million in cash and exchange $275 million of notes into new convertible notes. Using Fitch’s calculation, within a year the odds are nearly two in three that SandRidge will default. Related Articles
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Arch Coal Inc
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PRODUCER |
CODE : ACI |
ISIN : US0393801008 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Arch Coal is a coal producing company based in United states of america. Arch Coal holds various exploration projects in USA. Its main assets in production are WEST ELK, BLACK THUNDER and JACOB'S RANCH in USA and its main asset in development is SPRUCE N° 1 in USA. Arch Coal is listed in Germany and in United States of America. Its market capitalisation is US$ 366 000 as of today (€ 317 981). Its stock quote reached its highest recent level on June 27, 2003 at US$ 99.96, and its lowest recent point on October 04, 2018 at US$ 0.01. Arch Coal has 36 600 000 shares outstanding. |