"Bankruptcy Expected for Arch Coal, a Reflection of Industry Woes"

"Arch Coal, the nation's second largest coal company, this week told the Securities and  Exchange Commission that it may join other coal companies in filing for bankruptcy. The company said it may have to seek Chapter 11 relief because of 'extremely challenging current market conditions.'  The company, which is burdened by $5 billion in debt, said it did not see an upturn in sight.

'The coal industry remains in a period of distress due to strict governmental regulations, oversupply in the global coal market, increased competition from natural gas, and low coal demand and prices, among other factors,' the company said in its third-quarterly report.  'Many coal companies, including Arch, have been consistently reporting cash burn and losses, and, due to current market conditions, expect to continue to use cash and report losses for the foreseeable future.'

Listen to congressional Republicans, and you would think that President Obama’s regulations are behind the nosedive the coal industry has taken this year. Alpha Natural Resources filed for Chapter 11 this summer, Arch Coal may follow next. Its stock, which traded as high as $3,600 in 2011 dipped to $1.50 this week."

Elizabeth Shogren reports for High Country News November 7, 2015.