Arch Coal Said to Seek Compromise With Lenders on Debt Swap
- Holders of $1.9 billion loan may be offered higher yield
- Opposing lenders claim debt swap will weaken their position
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Arch Coal Inc. is seeking a compromise with lenders opposing a debt-swap deal that would help the struggling coal miner avoid a bankruptcy filing, according to four people with knowledge of the matter.
Holders of the coal miner’s $1.9 billion loan may be offered better terms as an incentive to drop their opposition to a proposal to swap as much as $2.38 billion of junior-ranking borrowings for new senior obligations, said the people, who asked not to be named because the discussions are private.