Arch Coal Dispute With Senior Lenders Puts Debt Plan at Risk

Arch Coal Inc. is caught in a dispute with senior lenders that’s thwarting its plan to cut debt costs and avoid the fate of four industry peers that have filed for bankruptcy protection.

A group of investors that holds the company’s $1.9 billion term loan is seeking to block a proposed debt swap, which would allow Arch Coal to replace its credit line with one that has less restrictive terms. The miner’s cash and available credit is declining toward the $550 million minimum mandated by its loan covenants.