Arch Coal in talks with restructuring advisers to cut debt -WSJ

May 22 (Reuters) - U.S. miner Arch Coal Inc is in talks with restructuring advisers as it seeks to reduce its debt, the Wall Street Journal reported on Friday, citing sources familiar with the matter.

Arch Coal and its rivals have been under pressure as power utilities switch to cheaper natural gas and big consumers such as China reduce imports.

The company is working with lawyers at Davis Polk & Wardwell LLP and financial advisers at Blackstone Group LP, the report said, citing the sources. (http://on.wsj.com/1FEw9TD)

However, Arch Coal is not looking at bankruptcy for a broad restructuring of its debt load, and is exploring ways to cut debt through deals with bondholder groups, the Journal reported.

The company is in discussions with holders of its bonds due in 2020, the report said. Advised by investment bank Moelis & Co , they include Blackstone's credit arm, GSO Capital Partners and hedge fund Hutchin Hill Capital LP, the Journal reported, citing one of its sources.

Arch Coal said in a statement after the market closed that it does not satisfy the New York Stock Exchange's continued listing standard.

Arch Coal, which posted a bigger-than-expected quarterly loss last month, had a total debt of $5.15 billion as of March 31.

Earlier this month, Patriot Coal Corp filed for bankruptcy protection just 18 months after emerging from its previous Chapter 11, and said it was in negotiations with a potential buyer.

Arch Coal officials were not immediately available for a comment.

As of Friday's close, the company's shares had fallen more than 82 percent in the last 12 months, compared with a 45 percent drop in the Dow Jones U.S. Coal index over the same period.

(Reporting by Anannya Pramanick in Bengaluru; Editing by Richard Chang)