While Peabody Energy Corp. has spent months negotiating its debt with lenders, another $1.47 billion problem has surfaced that’s threatening to force the nation’s biggest coal miner down the same road as its bankrupt rivals.
It’s called “self-bonding.” And it’s under attack by groups who’ve lodged complaints about the practice in five states in the past week. For decades, Peabody and other coal producers deemed to have strong balance sheets have saved cash under this privilege that excuses them from having to post collateral or obtain surety bonds that cover future mine clean-up costs. Peabody self-bonds in five states including Wyoming.
