Citing sources familiar with the matter, the Wall Street Journal reported that the company is working with lawyers of Davis Polk & Wardwell and financial advisers at Blackstone.
The company is in talks with bondholders whose bonds are due in 2020. As of 31 March, the company had a total debt of $5.15bn.
In a separate development, Arch Coal said it has six months become compliant with the New York Stock Exchange (NYSE) requirements, having been issued a notice to satisfy the exchange’s continued listing standards.
As per NYSE rules, the average closing price of a listed firm’s common stock should be about $1 a share for 30 consecutive trading days.
As of 15 May, the average closing price a share of Arch’s common stock in the previous 30 trading days was $0.99.
Arch Coal said will respond to the NYSE within 10 business days of receipt of the notification with its intent to resolve the deficiency.
The company noted that it will actively monitor its stock price and evaluate all available options in order to regain compliance within the timeframe.
