Peabody receives approval of procedures for $10 million interest sale

By Caroline Salls

Pittsburgh, Jan. 30 – Peabody Energy Corp. received court approval of the bidding procedures for the proposed $10 million sale of an interest in Dominion Terminal Associates to stalking horse bidder Newport News Terminal Associates, LLC, according to an order filed Monday with the U.S. Bankruptcy Court for the Eastern District of Missouri.

Peabody said its James River Coal Terminal, LLC and Peabody Terminal, LLC debtors together own a 37.5% share in Dominion.

If Newport News Terminal is not ultimately the high bidder, the debtors will pay it a $200,000 break-up fee and reimburse up to $150,000 of its sale-related expenses.

Competing bids are due by 5 p.m. ET on March 2. An auction will be held on March 6, if necessary.

Peabody said bidders wishing to participate in the auction must submit an initial bid that is at least $450,000 more than the stalking horse bid. Bids at auction must be made in minimum increments of $100,000.

The sale hearing is scheduled for March 9.

Peabody, a St. Louis-based coal producer, filed bankruptcy on April 13, 2016. The Chapter 11 case number is 16-42529.

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