Davis Polk is advising Arch Coal, Inc. (“Arch”) in connection with its restructuring under chapter 11 of the Bankruptcy Code, a $275 million debtor-in-possession (DIP) financing facility and a $200 million trade accounts receivable securitization facility (the “Securitization Facility”). Arch and 71 of its wholly owned domestic subsidiaries filed voluntary petitions for reorganization under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the Eastern District of Missouri on January 11, 2016.

In connection with its restructuring, Arch has obtained an agreement on the terms and conditions of a $275 million secured superpriority DIP financing facility, with Wilmington Trust, National Association acting as administrative agent, and certain members of an ad hoc group of existing senior secured term lenders (the “Ad Hoc Group”) as lenders, which was approved on an interim basis by the Bankruptcy Court on January 12, 2015. The Bankruptcy Court also approved, on an interim basis, Arch’s agreement with the providers of the Securitization Facility to continue the Securitization Facility during the chapter 11 cases.

Arch has also entered into a Restructuring Support Agreement (“RSA”) with members of the Ad Hoc Group holding more than 65% of the outstanding obligations under Arch’s $1.9 billion prepetition first-lien term loan facility. Under the RSA, the parties have agreed to the terms of a plan of reorganization that would eliminate more than $4.5 billion from Arch’s balance sheet.

Arch is the second-largest coal mining company in the United States by total reserves, controlling more than five billion tons of high-quality proven and probable reserves. Arch supplies both metallurgical and steam coal products to a variety of customers located in 36 states and 20 countries on five continents. It has mining operations at 10 complexes across the United States, including in Appalachia, Illinois and Colorado and Wyoming’s Powder River Basin.

The Davis Polk restructuring team includes partners Marshall S. Huebner and Brian M. Resnick, counsel Michelle M. McGreal and associate Kevin J. Coco. The finance team includes partner Jinsoo H. Kim and counsel John (JW) Perry. The litigation team includes partner Elliot Moskowitz. All members of the Davis Polk team are based in the New York office.

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