"Arch Coal Files For Bankruptcy, Hit By Mining Downturn"

"Arch Coal, the second-largest U.S. coal miner, filed for Chapter 11 bankruptcy protection on Monday with a plan to cut $4.5 billion in debt from its balance sheet in the midst of a prolonged downturn in the coal industry.

Arch Coal, saddled with debt since its 2011 acquisition of International Coal Group, has been suffering from a sharp drop in coal prices, stricter pollution controls, falling demand from China and increasing competition from natural gas.

"Over the past several years, a confluence of economic challenges and regulatory hurdles has hobbled the coal industry," Chief Financial Officer John Drexler said in a filing with the U.S. Bankruptcy Court in St. Louis on Monday. "

Tracy Rucinski reports for Reuters January 11, 2016.