NEW YORK (AP) – Arch Coal, which has been hurt by the weakening demand for coal, filed for Chapter 11 bankruptcy protection Monday.
The coal industry is struggling as electric power companies shift to using natural gas, which costs less than coal and produces less pollution. Other coal companies have filed for bankruptcy protection recently, including Alpha Natural Resources Inc. and Patriot Coal Corp.
Arch Coal Inc. says its mines will remain open and its employees should not be immediately affected by the bankruptcy process.
The company says it reached a deal with its lenders to reduce its debt by more than $4.5 billion. In filings with a bankruptcy court, the St. Louis-based company says it has $6.5 billion in debt and $5.8 billion in assets.
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