'Hedge funds were mixed on Arch Coal Inc (NYSE:ACI) in the second quarter. Although the number of funds owning Arch Coal shares increased to 15 from 13, the total value of their holdings in the stock declined to $6.03 million from $12.78 million.'
What's more important? The number of hedge funds holding ACI went up 15%. Or the total value of their holdings when down 47%. I'd say the latter.
Worrying about their debt load and share price can wait. Peabody is paying lawyers to fight over song lyrics.
And daddy won't you take me back to Muhlenberg County
"Down by the Green River where Paradise lay?
"Well, I'm sorry my son, but you're too late in asking
"Mister Peabody's coal train has hauled it away."
Peabody, which has been irritated by the song for decades, filed a lengthy brief asking for the offending verse to be stricken from the lawsuit, saying it was inflammatory and irrelevant.
The proposed debt swap is dead. Senior lenders are not interested in converting unsecured debt into new secured debt that impairs the value of their bonds. It is simply not in senior lenders interest to do so. The question now is can Arch fashion an acceptable compromise debt swap and what would it look like? It doesn't look like any new secured debt is acceptable to senior lenders.
If senior lenders are blocking the proposed swap, what would make them change their minds now?
'Arch is looking to compromise with lenders opposed to its proposed debt swap -- and thereby stave off the threat of bankruptcy -- shares shot up 633 percent in nine trading days. But Arch is having trouble completing the swap, with senior lenders still opposed. '