PEABODY ENERGY CORP - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - July 22, 2016

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8-K - 8-K - PEABODY ENERGY CORPa8k-btujune2016mor.htm
EXHIBIT 99.1

UNITED STATES BANKRUPTCY COURT
FOR THE EASTERN DISTRICT OF MISSOURI

Case Name: PEABODY ENERGY CORP, et al.                                    
Case Number: (Jointly Administered) 16-42529
Federal Tax I.D.: 13-4004153
Reporting Period: June 2016

CORPORATE MONTHLY OPERATING REPORT
REQUIRED DOCUMENTS
Form No.
Document Attached
Explanation Attached
Debtor Entities and Notes to MOR
 
x
 
Schedule of Cash Receipts and Disbursements
MOR-1
x
 
Bank Account Information
MOR-1a
x
 
Copies of bank reconciliations
 
 
 
Copies of bank statements
 
 
 
Statement of Operations
MOR-2
x
 
Balance Sheet
MOR-3
x
 
Statement of Cash Flows
MOR-3a
x
 
Status of Postpetition Taxes
MOR-4
 
x
Copies of IRS Form 6123 or payment receipt
 
 
 
Copies of tax returns filed during reporting period
 
 
 
Status of Insurance Coverage and Premium Payments
MOR-4
 
x
Summary of Unpaid Postpetition Debts
MOR-5
 
x
Accounts Receivable Reconciliation and Aging
MOR-5
 
x
Taxes Reconciliation and Aging
MOR-5
 
x
Schedule of Payments to Professionals
MOR-6
x
 
First and Second Lien Debt; Adequate Protection Payments
MOR-6
x
 
Debtor Questionnaire
MOR-7
x
 
Report of Other Significant Events
MOR-7
x
 

I declare under the penalty of perjury (28 U.S.C. Section 1746) that this report and the attached documents are true and correct to the best of my knowledge and belief.
/s/ Amy B. Schwetz
 
July 22, 2016
Signature of Authorized Individual*
 
Date
Amy B. Schwetz
 
 
Printed Name of Authorized Individual
 
 
Executive Vice President and Chief Financial Officer
 
 
Title
 
 

*Authorized individual must be an officer, director or shareholder if debtor is a corporation; a partner if debtor is a partnership; a manager or member if debtor is a limited liability company.

Case Name:    PEABODY ENERGY CORP, et al.                                        
Case Number:    (Jointly Administered) 16-42529                             1
UNITED STATES BANKRUPTCY COURT
FOR THE EASTERN DISTRICT OF MISSOURI




Listing of Debtor Entities

GENERAL:
The report includes activity from the following Debtors and related Case Numbers:
Debtor
Case No.
Debtor
Case No.
Peabody Energy Corporation
16-42529
Peabody Powder River Services, LLC
16-42613
Peabody Investments Corp.
16-42549
Peabody Wyoming Services, LLC
16-42653
Peabody International Services, Inc.
16-42541
Big Sky Coal Company
16-42530
Peabody International Investments, Inc.
16-42536
Peabody Powder River Mining, LLC
16-42666
Peabody Holding Company, LLC
16-42592
Peabody Caballo Mining, LLC
16-42533
Peabody Operations Holding, LLC
16-42678
Peabody Colorado Operations, LLC
16-42563
Gold Fields Mining, LLC
16-42561
Seneca Coal Company, LLC
16-42652
Arid Operations, Inc.
16-42562
Twentymile Coal, LLC
16-42669
Gold Fields Chile, LLC
16-42548
Colorado Yampa Coal Company, LLC.
16-42560
Gold Fields Ortiz, LLC
16-42578
Moffat County Mining, LLC
16-42636
Peabody Venezuela Coal Corp.
16-42651
Shoshone Coal Corporation
16-42668
Midco Supply and Equipment Corporation
16-42585
Hayden Gulch Terminal, LLC
16-42583
Peabody Terminal Holding Company, LLC
16-42650
Peabody Sage Creek Mining, LLC
16-42625
Peabody Terminals, LLC
16-42614
Peabody Rocky Mountain Services, LLC
16-42616
Peabody Midwest Operations, LLC
16-42660
Peabody Rocky Mountain Management Services, LLC
16-42603
Dyson Creek Mining Company, LLC
16-42621
Peabody Colorado Services, LLC
16-42531
Peabody Midwest Mining, LLC
16-42667
Peabody Twentymile Mining, LLC
16-42627
Peabody Arclar Mining, LLC
16-42545
New Mexico Coal Resources, LLC
16-42647
Falcon Coal Company, LLC
16-42547
Peabody Natural Resources Company
16-42634
Sugar Camp Properties, LLC
16-42649
Gallo Finance Company, LLC.
16-42586
United Minerals Company LLC
16-42663
Peabody America, LLC
16-42609
Big Ridge, Inc.
16-42553
El Segundo Coal Company, LLC
16-42691
Peabody Bear Run Mining, LLC
16-42565
Peabody New Mexico Services, LLC
16-42646
Peabody Wild Boar Mining, LLC
16-42672
Peabody Western Coal Company
16-42644
Peabody Bear Run Services, LLC
16-42574
Peabody Coalsales, LLC
16-42539
Peabody Gateway Services, LLC
16-42581
COALSALES II, LLC
16-42570
Peabody Illinois Services, LLC
16-42610
Peabody COALTRADE, LLC
16-42575
Peabody Indiana Services, LLC
16-42619
Peabody COALTRADE International (CTI), LLC
16-42590
Peabody Wild Boar Services, LLC
16-42677
Peabody Energy Solutions, Inc.
16-42632
Peabody Midwest Management Services, LLC
16-42593
American Land Development, LLC
16-42535
Peabody Midwest Services, LLC
16-42608
Dyson Creek Coal Company, LLC
16-42612
Midwest Coal Acquistion Corporation
16-42576
Juniper Coal Company, LLC.
16-42577
Peabody Coulterville Mining, LLC
16-42550
Independence Material Handling, LLC
16-42606
Peabody Gateway North Mining, LLC
16-42624
Cottonwood Land Company
16-42572
Riverview Terminal Company
16-42664
Cyprus Creek Land Company
16-42534
Black Hills Mining Company LLC
16-42544
American Land Holdings of Illinois, LLC
16-42600
Point Pleasant Dock Company LLC
16-42655
Midwest Coal Reserves of Illinois, LLC
16-42597
Peabody Powder River Operations, LLC
16-42676
Illinois Land Holdings, LLC
16-42599
West Roundup Resources, LLC
16-42671
Century Mineral Resources, Inc.
16-42567
BTU Western Resources, Inc.
16-42554
American Land Holdings of Indiana, LLC
16-42546

Case Name:    PEABODY ENERGY CORP, et al.                                        
Case Number:    (Jointly Administered) 16-42529                             2
UNITED STATES BANKRUPTCY COURT
FOR THE EASTERN DISTRICT OF MISSOURI


Debtor
Case No.
Debtor
Case No.
Midwest Coal Reserves of Indiana, LLC
16-42611
Sage Creek Land & Reserves, LLC
16-42635
American Land Holdings of Kentucky, LLC
16-42589
Twentymile Holdings, LLC
16-42654
Caseyville Dock Company, LLC
16-42537
American Land Holdings Of New Mexico, LLC
16-42579
Peabody Recreational Lands, L.L.C.
16-42605
Four Star Holdings, LLC
16-42556
Hillside Recreational Lands, LLC
16-42594
Francisco Equipment Company, LLC
16-42568
Peabody-Waterside Development LLC
16-42662
Francisco Land Holdings Company, LLC
16-42580
Cyprus Creek Land Resources LLC
16-42602
Francisco Mining, LLC
16-42591
Peabody Development Company, LLC
16-42558
Kentucky Syngas, LLC
16-42618
Central States Coal Reserves Of Illinois, LLC
16-42688
Lively Grove Energy, LLC
16-42595
Central States Coal Reserves of Indiana, LLC
16-42551
Marigold Electricity, LLC
16-42628
Peabody Natural Gas, LLC
16-42626
NM Equipment Company, LLC
16-42582
American Land Holdings of West Virginia, LLC
16-42571
Peabody Archveyor, LLC
16-42623
Conservancy Resources, LLC
16-42564
Peabody Energy Investments, Inc.
16-42642
School Creek Coal Resources, LLC
16-42643
Peabody Magnolia Grove Holdings, LLC
16-42587
American Land Holdings of Colorado, LLC
16-42540
Peabody Southwest, LLC
16-42631
Sage Creek Holdings, LLC
16-42670
Peabody Southwestern Coal Company, LLC.
16-42641
Peabody Electricity, LLC
16-42532
Peabody Williams Fork Mining, LLC
16-42630
Star Lake Energy Company, L.L.C.
16-42639
Porcupine Production, LLC
16-42648
Peabody Energy Generation Holding Company
16-42656
Porcupine Transportation, LLC
16-42665
Thoroughbred Generating Company, L.L.C.
16-42679
Seneca Property, LLC
16-42659
Thoroughbred Mining Company LLC
16-42680
Southwest Coal Holdings, LLC
16-42674
Mustang Energy Company. LLC
16-42657
Twentymile Equipment Company, LLC
16-42675
Peabody Wyoming Gas, LLC
16-42640
Wild Boar Equipment Company, LLC
16-42658
Peabody Venture Fund, LLC
16-42637
Wild Boar Land Holdings Company, LLC
16-42661
Peabody PowerTree Investments LLC
16-42596
James River Coal Terminal, LLC
16-42569
Highwall Mining Services Company
16-42588
Peabody Employment Services, LLC
16-42538
HMC Mining, LLC
16-42566
Kentucky United Coal LLC
16-42573
PEC Equipment Company, LLC
16-42673
Coal Reserve Holding Limited Liability Company No. 1
16-42543
Peabody Services Holdings, LLC
16-42645
Peabody Asset Holdings, LLC
16-42555
Caballo Grande, LLC
16-42559
Peabody IC Funding Corp.
16-42615
Peabody Cardinal Gasification, LLC
16-42542
Peabody IC Holdings, LLC
16-42601
Empire Land Holdings, LLC
16-42692
Peabody Holdings (Gibraltar) Ltd.
16-42604
Peabody Trout Creek Reservoir LLC
16-42622
Midwest Coal Reserves of Kentucky, LLC
16-42620
Pond River Land Company
16-42629
Peabody China, LLC
16-42552
Pacific Export Resources, LLC
16-42598
Peabody Mongolia, LLC
16-42617
Kayenta Mobile Home Park, Inc.
16-42607
PG INVESTMENTS SIX, L.L.C.
16-42638
Peabody School Creek Mining, LLC
16-42633
 
 








Case Name:    PEABODY ENERGY CORP, et al.                                        
Case Number:    (Jointly Administered) 16-42529                             3
UNITED STATES BANKRUPTCY COURT
FOR THE EASTERN DISTRICT OF MISSOURI


NOTES TO THE MONTHLY OPERATING REPORT


General Notes to the MOR:

1.
Introduction.

On April 13, 2016 (the "Petition Date"), Peabody Energy Corporation ("Peabody") and certain of its subsidiaries and affiliates (collectively with Peabody, the "Debtors") filed voluntary petitions for relief (the "Chapter 11 Cases") under Chapter 11 of Title 11 of the U.S. Code (the "Bankruptcy Code") in the United States Bankruptcy Court for the Eastern District of Missouri (the "Bankruptcy Court"). The Debtors continue to operate their businesses and manage their properties as "debtors-in-possession" pursuant to sections 1107(a) and 1108 of the Bankruptcy Code. On April 29, 2016 the United States Trustee for the Eastern District of Missouri (the "U.S. Trustee") appointed a statutory committee of unsecured creditors pursuant to section 1102(a)(1) of the Bankruptcy Code. Information contained herein may differ from the Debtors' Bankruptcy Court filings on the Petition Date due to more accurate information becoming available.

2.
Accounting Principles.

This Monthly Operating Report (the "MOR") includes information regarding the Debtors only and excludes or segregates information regarding non-Debtor affiliates. The financial statements and supplemental information contained herein are preliminary, unaudited, limited in scope, cover a limited time period and have been prepared solely for the purpose of complying with the monthly reporting requirements for chapter 11 debtors as required by the Bankruptcy Court. As discussed below, the financial statements and supplemental information contained herein may not comply with generally accepted accounting principles in the United States of America ("GAAP") in all material respects. Therefore, there can be no assurance that the financial statements and supplemental information presented herein are complete, and readers are strongly cautioned not to place undue reliance on this MOR.

The unaudited condensed consolidated financial statements have been derived from the books and records of the Debtors. The information furnished in this report includes primarily normal recurring adjustments but does not include all the adjustments that would typically be made for financial statements in accordance with U.S. GAAP. Furthermore, the information contained herein has not been subject to the same level of accounting review and testing that would typically be applied to financial information in accordance with GAAP. Accordingly, upon application of such procedures, the Debtors believe that the financial information could be subject to changes, and these changes could be material.

3.
General Methodology.

The Debtors prepared this MOR relying primarily upon the information set forth in their books and records. Consequently, certain transactions that are not identified in the normal course of business in the Debtors' books and records may not be included in this MOR. Nevertheless, in preparing this MOR, the Debtors made reasonable efforts to supplement the information set forth in their books and records with additional information concerning transactions that may not have been identified therein, to the extent necessary.

4.
Past Performance.

The results of operations and financial position contained herein are not necessarily indicative of results that may be expected for any other period or for the full year and may not necessarily reflect the consolidated results of operations and financial position of the Debtors in the future.

5.
Accounts Payable and Accrued Expenses.

To the best of the Debtors' knowledge, unaudited postpetition trade payables are current as well as all premiums for insurance policies (see MOR-4).

6.
Carrying Value of Assets.

Unless otherwise indicated, the values for assets contained in this MOR are book values as of the end of the month for the reporting period. Amounts ultimately realized from the disposition of the Debtors' assets may vary materially from the stated book value of the Debtors' assets. Thus, unless otherwise noted, this MOR reflects the carrying values of the assets as recorded on the Debtors' books and records as of the end of the month and are not based upon any estimate of their current market value. The Debtors reserve their rights to amend or adjust the value of each asset set forth herein.


Case Name:    PEABODY ENERGY CORP, et al.                                        
Case Number:    (Jointly Administered) 16-42529                             4
UNITED STATES BANKRUPTCY COURT
FOR THE EASTERN DISTRICT OF MISSOURI


NOTES TO THE MONTHLY OPERATING REPORT

7.
Intercompany Receivables/Payables.

In accordance with the Final Order Pursuant to Sections 345, 363(c)(1), 364, 503(b)(1) and 553 of the Bankruptcy Code: (i) Approving the Continued Use of the Debtors' Cash Management System, Bank Accounts and Business Forms; (ii) Granting a Waiver of the Requirements of Section 345(b) and Certain of the U.S. Trustee's Operating Guidelines; (iii) Permitting Continued Intercompany Transactions; (iv) Preserving and Permitting the Exercise of Intercompany Setoff Rights; and (v) Authorizing Banks to Honor Certain Transfers and Charge Certain Fees and Other Amounts [ECF No. 515], entered by the Bankruptcy Court on May 17, 2016, the Debtors maintain intercompany receivables and payables with certain Debtor and non-Debtor subsidiaries.

8.
Prepetition Liabilities.

As a result of commencing the Chapter 11 Cases, the payment of prepetition indebtedness is subject to compromise or other treatment under a chapter 11 reorganization plan unless authorized by court order. Generally, actions to enforce or otherwise effect payment of prepetition liabilities are stayed.

9.
Postpetition Liabilities.

Although payment of prepetition claims is generally not permitted, the Bankruptcy Court has authorized the Debtors to pay certain prepetition claims in designated categories and subject to certain terms and conditions. This relief generally was designed to preserve the value of the Debtors' business and assets. To the extent such claims have been categorized as "Postpetition Liabilities" herein, the Debtors reserve the right to dispute their obligations to make such payments and not pay such amounts if they believe the payment not to be in the best interest of the Debtors' estates. The Debtors have paid and continue to pay undisputed postpetition obligations in the ordinary course of business.

10.
Allocation of Prepetition and Postpetition Liabilities.

The Debtors have sought to record liabilities between the prepetition and postpetition periods based upon the information available at the time of, and research conducted in connection with, the preparation of this MOR. As additional information becomes available and further research is conducted, the Debtors may adjust liabilities between the prepetition and postpetition periods. The liability information, except as otherwise noted, is listed as of the close of business as of June 30, 2016. Accordingly, the Debtors reserve all rights to amend, supplement or otherwise modify this MOR as necessary and appropriate.

11.
Reservation of Rights.

Given the complexity of the Debtors' business, inadvertent errors or omissions or the overinclusion of contracts or leases may have occurred in the preparation of this MOR. Accordingly, the Debtors hereby reserve all rights to dispute the validity, status, enforceability or the executory nature of any claim amounts, representations or other statements in this MOR and reserve the right to amend or supplement this MOR, if necessary.

Nothing contained in this MOR shall constitute a waiver of the Debtors' rights or an admission with respect to the Chapter 11 Cases, including with respect to any issues regarding the Debtors' ownership interests, substantive consolidation, equitable subordination, defenses and/or causes of action arising under chapter 5 of the Bankruptcy Code and any other applicable non-bankruptcy law.





Case Name:    PEABODY ENERGY CORP, et al.                                        
Case Number:    (Jointly Administered) 16-42529                             5
UNITED STATES BANKRUPTCY COURT
FOR THE EASTERN DISTRICT OF MISSOURI


MOR-1                


SCHEDULE OF CASH RECEIPTS & DISBURSEMENTS
Period Covered: June 1 through June 30, 2016
(Dollars in millions)
Case No.
Debtor
Cash Receipts
Cash Disbursements
16-42529
Peabody Energy Corporation
$
232.6

$
21.0

16-42549
Peabody Investments Corp.
4.7

27.1

16-42541
Peabody International Services, Inc.
—

0.1

16-42536
Peabody International Investments, Inc.
—

—

16-42592
Peabody Holding Company, LLC
—

1.4

16-42678
Peabody Operations Holding, LLC
—

—

16-42561
Gold Fields Mining, LLC
—

0.1

16-42562
Arid Operations, Inc.
—

—

16-42548
Gold Fields Chile, LLC
—

—

16-42578
Gold Fields Ortiz, LLC
—

—

16-42651
Peabody Venezuela Coal Corp.
—

—

16-42585
Midco Supply and Equipment Corporation
—

—

16-42650
Peabody Terminal Holding Company, LLC
—

—

16-42614
Peabody Terminals, LLC
—

0.4

16-42660
Peabody Midwest Operations, LLC
—

—

16-42621
Dyson Creek Mining Company, LLC
—

—

16-42667
Peabody Midwest Mining, LLC
—

6.5

16-42545
Peabody Arclar Mining, LLC
—

1.9

16-42547
Falcon Coal Company, LLC
—

—

16-42649
Sugar Camp Properties, LLC
—

—

16-42663
United Minerals Company LLC
—

—

16-42553
Big Ridge, Inc.
—

—

16-42565
Peabody Bear Run Mining, LLC
—

13.3

16-42672
Peabody Wild Boar Mining, LLC
—

2.2

16-42574
Peabody Bear Run Services, LLC
—

3.3

16-42581
Peabody Gateway Services, LLC
—

0.9

16-42610
Peabody Illinois Services, LLC
—

1.3

16-42619
Peabody Indiana Services, LLC
—

3.1

16-42677
Peabody Wild Boar Services, LLC
—

1.0

16-42593
Peabody Midwest Management Services, LLC
—

1.6

16-42608
Peabody Midwest Services, LLC
—

—

16-42576
Midwest Coal Acquistion Corporation
—

—

16-42550
Peabody Coulterville Mining, LLC
—

—

16-42624
Peabody Gateway North Mining, LLC
—

1.1

16-42664
Riverview Terminal Company
—

—

16-42544
Black Hills Mining Company LLC
—

—

16-42655
Point Pleasant Dock Company LLC
—

—

16-42676
Peabody Powder River Operations, LLC
—

—

16-42671
West Roundup Resources, LLC
—

—

16-42554
BTU Western Resources, Inc.
—

8.3


Case Name:    PEABODY ENERGY CORP, et al.                                        
Case Number:    (Jointly Administered) 16-42529                             6
UNITED STATES BANKRUPTCY COURT
FOR THE EASTERN DISTRICT OF MISSOURI


Case No.
Debtor
Cash Receipts
Cash Disbursements
16-42613
Peabody Powder River Services, LLC
—

10.0

16-42653
Peabody Wyoming Services, LLC
—

—

16-42530
Big Sky Coal Company
—

—

16-42666
Peabody Powder River Mining, LLC
—

33.8

16-42533
Peabody Caballo Mining, LLC
—

3.0

16-42563
Peabody Colorado Operations, LLC
—

—

16-42652
Seneca Coal Company, LLC
—

—

16-42669
Twentymile Coal, LLC
—

1.2

16-42560
Colorado Yampa Coal Company, LLC.
—

—

16-42636
Moffat County Mining, LLC
—

—

16-42668
Shoshone Coal Corporation
—

—

16-42583
Hayden Gulch Terminal, LLC
—

—

16-42625
Peabody Sage Creek Mining, LLC
—

—

16-42616
Peabody Rocky Mountain Services, LLC
—

1.9

16-42603
Peabody Rocky Mountain Management Services, LLC
—

0.6

16-42531
Peabody Colorado Services, LLC
—

—

16-42627
Peabody Twentymile Mining, LLC
—

5.7

16-42647
New Mexico Coal Resources, LLC
—

—

16-42634
Peabody Natural Resources Company
—

—

16-42586
Gallo Finance Company, LLC.
—

—

16-42609
Peabody America, LLC
—

—

16-42691
El Segundo Coal Company, LLC
—

4.0

16-42646
Peabody New Mexico Services, LLC
—

2.6

16-42644
Peabody Western Coal Company
—

14.0

16-42539
Peabody Coalsales, LLC
—

0.6

16-42570
COALSALES II, LLC
—

—

16-42575
Peabody COALTRADE, LLC
—

1.1

16-42590
Peabody COALTRADE International (CTI), LLC
—

—

16-42632
Peabody Energy Solutions, Inc.
—

—

16-42535
American Land Development, LLC
—

—

16-42612
Dyson Creek Coal Company, LLC
—

—

16-42577
Juniper Coal Company, LLC.
—

—

16-42606
Independence Material Handling, LLC
—

—

16-42572
Cottonwood Land Company
—

—

16-42534
Cyprus Creek Land Company
—

—

16-42600
American Land Holdings of Illinois, LLC
—

0.1

16-42597
Midwest Coal Reserves of Illinois, LLC
—

—

16-42599
Illinois Land Holdings, LLC
—

—

16-42567
Century Mineral Resources, Inc.
—

—

16-42546
American Land Holdings of Indiana, LLC
—

2.7

16-42611
Midwest Coal Reserves of Indiana, LLC
—

0.1

16-42589
American Land Holdings of Kentucky, LLC
—

—

16-42537
Caseyville Dock Company, LLC
—

—

16-42605
Peabody Recreational Lands, L.L.C.
—

—

16-42594
Hillside Recreational Lands, LLC
—

—


Case Name:    PEABODY ENERGY CORP, et al.                                        
Case Number:    (Jointly Administered) 16-42529                             7
UNITED STATES BANKRUPTCY COURT
FOR THE EASTERN DISTRICT OF MISSOURI


Case No.
Debtor
Cash Receipts
Cash Disbursements
16-42662
Peabody-Waterside Development LLC
—

—

16-42602
Cyprus Creek Land Resources LLC
—

—

16-42558
Peabody Development Company, LLC
—

0.1

16-42688
Central States Coal Reserves Of Illinois, LLC
—

—

16-42551
Central States Coal Reserves of Indiana, LLC
—

—

16-42626
Peabody Natural Gas, LLC
—

—

16-42571
American Land Holdings of West Virginia, LLC
—

—

16-42564
Conservancy Resources, LLC
—

0.1

16-42643
School Creek Coal Resources, LLC
—

3.7

16-42540
American Land Holdings of Colorado, LLC
—

—

16-42670
Sage Creek Holdings, LLC
—

—

16-42532
Peabody Electricity, LLC
—

0.6

16-42639
Star Lake Energy Company, L.L.C.
—

—

16-42656
Peabody Energy Generation Holding Company
—

—

16-42679
Thoroughbred Generating Company, L.L.C.
—

—

16-42680
Thoroughbred Mining Company LLC
—

—

16-42657
Mustang Energy Company. LLC
—

—

16-42640
Peabody Wyoming Gas, LLC
—

—

16-42637
Peabody Venture Fund, LLC
—

—

16-42596
Peabody PowerTree Investments LLC
—

—

16-42588
Highwall Mining Services Company
—

—

16-42566
HMC Mining, LLC
—

—

16-42673
PEC Equipment Company, LLC
—

9.4

16-42645
Peabody Services Holdings, LLC
—

—

16-42559
Caballo Grande, LLC
—

—

16-42542
Peabody Cardinal Gasification, LLC
—

—

16-42692
Empire Land Holdings, LLC
—

—

16-42622
Peabody Trout Creek Reservoir LLC
—

—

16-42629
Pond River Land Company
—

—

16-42598
Pacific Export Resources, LLC
—

—

16-42607
Kayenta Mobile Home Park, Inc.
—

—

16-42633
Peabody School Creek Mining, LLC
—

—

16-42635
Sage Creek Land & Reserves, LLC
—

—

16-42654
Twentymile Holdings, LLC
—

—

16-42579
American Land Holdings Of New Mexico, LLC
—

—

16-42556
Four Star Holdings, LLC
—

—

16-42568
Francisco Equipment Company, LLC
—

—

16-42580
Francisco Land Holdings Company, LLC
—

—

16-42591
Francisco Mining, LLC
—

—

16-42618
Kentucky Syngas, LLC
—

—

16-42595
Lively Grove Energy, LLC
—

—

16-42628
Marigold Electricity, LLC
—

—

16-42582
NM Equipment Company, LLC
—

—

16-42623
Peabody Archveyor, LLC
—

—

16-42642
Peabody Energy Investments, Inc.
—

—


Case Name:    PEABODY ENERGY CORP, et al.                                        
Case Number:    (Jointly Administered) 16-42529                             8
UNITED STATES BANKRUPTCY COURT
FOR THE EASTERN DISTRICT OF MISSOURI


Case No.
Debtor
Cash Receipts
Cash Disbursements
16-42587
Peabody Magnolia Grove Holdings, LLC
—

—

16-42631
Peabody Southwest, LLC
—

—

16-42641
Peabody Southwestern Coal Company, LLC.
—

—

16-42630
Peabody Williams Fork Mining, LLC
—

—

16-42648
Porcupine Production, LLC
—

—

16-42665
Porcupine Transportation, LLC
—

—

16-42659
Seneca Property, LLC
—

—

16-42674
Southwest Coal Holdings, LLC
—

—

16-42675
Twentymile Equipment Company, LLC
—

—

16-42658
Wild Boar Equipment Company, LLC
—

—

16-42661
Wild Boar Land Holdings Company, LLC
—

—

16-42569
James River Coal Terminal, LLC
—

—

16-42538
Peabody Employment Services, LLC
—

—

16-42573
Kentucky United Coal LLC
—

—

16-42543
Coal Reserve Holding Limited Liability Company No. 1
—

—

16-42555
Peabody Asset Holdings, LLC
6.5

—

16-42615
Peabody IC Funding Corp.
—

—

16-42601
Peabody IC Holdings, LLC
—

—

16-42604
Peabody Holdings (Gibraltar) Ltd.
—

—

16-42620
Midwest Coal Reserves of Kentucky, LLC
—

—

16-42552
Peabody China, LLC
—

—

16-42617
Peabody Mongolia, LLC
—

—

16-42638
PG INVESTMENTS SIX, L.L.C.
—

—

Total
 
$
243.8

$
189.9


Notes to MOR-1:

The Debtors utilize a consolidated cash management system for cash receipts and cash disbursements. Cash receipts from the sale of coal are recorded by non-Debtor P&L Receivables Company, LLC. Cash receipts reflected above for Debtor Peabody Energy Corporation include distributions from P&L Receivables Company, LLC which are generated from the sale of receivables to a consortium of unaffiliated asset-backed commercial paper conduits and banks. Cash disbursements are also made utilizing the consolidated cash management system but are shown by Debtor based upon the entity for whom the payment was made.

Disbursements made by non-Debtor subsidiaries are not included in MOR-1.






Case Name:    PEABODY ENERGY CORP, et al.                                        
Case Number:    (Jointly Administered) 16-42529                             9
UNITED STATES BANKRUPTCY COURT
FOR THE EASTERN DISTRICT OF MISSOURI


MOR-1a                    

BANK ACCOUNT INFORMATION
As of June 30, 2016
(Dollars in millions)

Legal Entity
Case Number
Financial Institution
Account Number Ending
Book Balance in USD
COALSALES II, LLC
16-42570
Bank of America
7828
$
—

Gold Fields Mining, LLC
16-42561
Bank of America
7750
—

Gold Fields Mining, LLC
16-42561
PNC Bank
1447
—

Gold Fields Mining, LLC
16-42561
U.S. Bank
3000
—

Gold Fields Mining, LLC
16-42561
U.S. Bank
7000
—

Gold Fields Mining, LLC
16-42561
U.S. Bank
7000
—

Gold Fields Mining, LLC
16-42561
U.S. Bank
8000
—

Peabody Asset Holdings, LLC
16-42555
Bank of America
3574
6.5

Peabody COALTRADE International (CTI), LLC
16-42590
PNC Bank
0195
—

Peabody COALTRADE, LLC
16-42575
Bank of America
7844
—

Peabody Coulterville Mining, LLC
16-42550
Coulterville Banking Center
3141
—

Peabody Development Company, LLC
16-42558
PNC Bank
1295
—

Peabody Energy Corporation
16-42529
Bank of America (2)
3MSS
—

Peabody Energy Corporation
16-42529
Bank of America
7721
27.6

Peabody Energy Corporation
16-42529
BBVA Compass Bancshares
6185
20.1

Peabody Energy Corporation
16-42529
Citibank
5856
—

Peabody Energy Corporation
16-42529
Citibank
5857
—

Peabody Energy Corporation
16-42529
Citibank
7362
—

Peabody Energy Corporation
16-42529
Goldman Sachs
1467
—

Peabody Energy Corporation
16-42529
HSBC US
7995
—

Peabody Energy Corporation
16-42529
PNC Bank
5539
47.2

Peabody Energy Corporation
16-42529
Regions Bank
0061
25.2

Peabody Energy Corporation
16-42529
Regions Bank
0188
289.0

Peabody Energy Corporation
16-42529
Standard Chartered Bank
8001
—

Peabody Energy Corporation
16-42529
TD Bank
4661
1.4

Peabody Energy Corporation
16-42529
Texas Capital Bank
8596
—

Peabody Energy Corporation
16-42529
U.S. Bank
0672
0.2

Peabody Energy Corporation
16-42529
Wells Fargo Bank
3458
—

Peabody Energy Corporation
16-42529
Wells Fargo Bank
6745
—

Peabody Energy Corporation
16-42529
Wells Fargo Bank
2953
327.0

Peabody Holdings (Gibraltar) Limited
16-42604
Bank of America
8465
2.5

Peabody International Services Inc.
16-42541
Bank of America
2615
—

Peabody Investments Corp.
16-42549
Bank of America (1)
0622
—

Peabody Investments Corp.
16-42549
Bank of America
5431
—

Peabody Investments Corp.
16-42549
Bank of America
7734
—

Peabody Investments Corp.
16-42549
Bank of America
7747
—

Peabody Investments Corp.
16-42549
Commerce Bank
4951
—

Peabody Investments Corp.
16-42549
Fifth Third Bank
7783
—

Peabody Investments Corp.
16-42549
PNC Bank
1375
—

Peabody Investments Corp.
16-42549
Regions Bank
0088
—


Case Name:    PEABODY ENERGY CORP, et al.                                        
Case Number:    (Jointly Administered) 16-42529                             10
UNITED STATES BANKRUPTCY COURT
FOR THE EASTERN DISTRICT OF MISSOURI


Legal Entity
Case Number
Financial Institution
Account Number Ending
Book Balance in USD
Peabody Investments Corp.
16-42549
U.S. Bank
4740
1.0

Peabody Investments Corp.
16-42549
U.S. Bank
7836
1.0

Peabody Midwest Mining, LLC
16-42667
Bank of America
7815
—

Peabody Natural Gas, LLC
16-42626
Bank of America
4219
—

Peabody Natural Gas, LLC
16-42626
PNC Bank
9694
—

Peabody Natural Resources Company
16-42634
Grants State Bank
3722
—

Peabody Natural Resources Company
16-42634
PNC Bank
1439
—

Peabody Powder River Mining, LLC
16-42666
Bank of America
7873
—

Peabody Powder River Services, LLC
16-42613
UMB Bank
0246
—

Peabody Recreational Lands, L.L.C.
16-42605
U.S. Bank
1279
—

Peabody Rocky Mountain Management Services, LLC
16-42603
UMB Bank
0270
—

Peabody Rocky Mountain Services, LLC
16-42616
UMB Bank
0262
—

Peabody Western Coal Company
16-42644
Bank of America
7860
—

Peabody Western Coal Company
16-42644
Bank of America (1)
0635
—

Peabody Western Coal Company
16-42644
U.S. Bank
2082
1.0

Peabody Western Coal Company
16-42644
Wells Fargo Bank
3356
—

Twentymile Coal, LLC
16-42669
Wells Fargo Bank
3692
—

Total
 
 
 
$
749.7


(1) New account opened during the current reporting period
(2) Account closed during the current reporting period

Notes to MOR-1a:

The Debtors affirm that reconciliations for all open and active bank accounts are prepared and maintained by the Debtors. Bank account statements and reconciliations are not attached to this monthly operating report, but will be made available upon request of the U.S. Trustee. In addition, the Debtors affirm that no bank accounts were opened or closed during the current reporting period with the exception of those denoted in the footnotes to the table above.




Case Name:    PEABODY ENERGY CORP, et al.                                        
Case Number:    (Jointly Administered) 16-42529                             11
UNITED STATES BANKRUPTCY COURT
FOR THE EASTERN DISTRICT OF MISSOURI


MOR-2                    


UNAUDITED STATEMENT OF OPERATIONS
(Dollars in millions)

 
For the Month Ended June 30, 2016
 
Debtors
 
Non-Debtors
 
Eliminations
 
Consolidated
Revenues
 
 
 
 
 
 
 
Sales
$
238.1

 
$
110.1

 
$
—

 
$
348.2

Other revenues
3.6

 
33.7

 
(0.5
)
 
36.8

Total revenues
241.7

 
143.8


(0.5
)
 
385.0

Costs and expenses
 
 
 
 
 
 
 
Operating costs and expenses (exclusive of items shown separately below)
188.5

 
152.2

 
(0.5
)
 
340.2

Depreciation, depletion and amortization
20.3

 
20.7

 
—

 
41.0

Asset retirement obligation expenses
1.2

 
1.7

 
—

 
2.9

Selling and administrative expenses
7.5

 
0.2

 
—

 
7.7

Restructuring charges
1.3

 
—

 
—

 
1.3

Other operating (income) loss:
 
 
 
 
 
 
 
Net gain on disposal of assets
(4.1
)
 
—

 
—

 
(4.1
)
Loss from equity affiliates and investment in subsidiaries (1)
35.8

 
0.4

 
(35.5
)
 
0.7

Operating loss
(8.8
)
 
(31.4
)
 
35.5

 
(4.7
)
Interest expense
17.7

 
2.3

 
(1.1
)
 
18.9

Interest income
(0.4
)
 
(1.3
)
 
1.1

 
(0.6
)
Reorganization items, net
15.9

 
(0.3
)
 
—

 
15.6

Loss from continuing operations before income taxes
(42.0
)
 
(32.1
)
 
35.5

 
(38.6
)
Income tax (benefit) provision
(1.2
)
 
1.6

 
—

 
0.4

Loss from continuing operations, net of income taxes
(40.8
)
 
(33.7
)
 
35.5

 
(39.0
)
Loss from discontinued operations, net of income taxes
(1.0
)
 
(0.4
)
 
—

 
(1.4
)
Net loss
(41.8
)
 
(34.1
)
 
35.5

 
(40.4
)
Less: Net income attributable to noncontrolling interests
—

 
1.4

 
—

 
1.4

Net loss attributable to common stockholders
$
(41.8
)
 
$
(35.5
)
 
$
35.5

 
$
(41.8
)

(1) Loss from equity affiliates and investments in subsidiaries in the Debtors' results includes Non-Debtors' losses of $35.5 million.


Case Name:    PEABODY ENERGY CORP, et al.                                        
Case Number:    (Jointly Administered) 16-42529                             12
UNITED STATES BANKRUPTCY COURT
FOR THE EASTERN DISTRICT OF MISSOURI


MOR-2        


UNAUDITED STATEMENT OF OPERATIONS
(Dollars in millions)

Notes to MOR-2:

The Company's reorganization items for the month ended June 30, 2016 consisted of the following:
 
Debtors
 
Non-Debtors
 
Consolidated
Loss on termination of derivative contracts
$
—

 
$
—

 
$
—

Professional fees
16.1

 
(0.3
)
 
15.8

Accounts payable settlement (gains) losses
(0.2
)
 
—

 
(0.2
)
Adjustment for rejected executory contracts
—

 
—

 
—

Interest income
(0.1
)
 
—

 
(0.1
)
Other
0.1

 
—

 
0.1

Reorganization items, net
$
15.9

 
$
(0.3
)
 
$
15.6


Professional fees are only those that are directly related to the reorganization and include, among other things, fees associated with advisors to the Debtors, the statutory committee of unsecured creditors and certain secured and unsecured creditors.

Case Name:    PEABODY ENERGY CORP, et al.                                        
Case Number:    (Jointly Administered) 16-42529                             13
UNITED STATES BANKRUPTCY COURT
FOR THE EASTERN DISTRICT OF MISSOURI


MOR-3                

UNAUDITED BALANCE SHEET
(Dollars in millions)

 
As of June 30, 2016
 
Debtors
 
Non-Debtors
 

Eliminations
 
Consolidated
Assets
 

 
 

 
 

 
 

Current assets
 

 
 

 
 

 
 
Cash and cash equivalents
$
749.7

 
$
524.6

 
$
—

 
$
1,274.3

Restricted cash
—

 
47.1

 
—

 
47.1

Accounts receivable, net
21.3

 
329.3

 
—

 
350.6

Receivables from affiliates, net
451.6

 
—

 
(451.6
)
 
—

Inventories
162.0

 
141.7

 
—

 
303.7

Assets from coal trading activities, net
0.3

 
17.0

 
—

 
17.3

Deferred income taxes
53.4

 
0.1

 
—

 
53.5

Other current assets
96.3

 
239.1

 
—

 
335.4

Total current assets
1,534.6

 
1,298.9

 
(451.6
)
 
2,381.9

Property, plant, equipment and mine development, net
4,701.2

 
4,360.7

 
—

 
9,061.9

Deferred income taxes
—

 
2.2

 
—

 
2.2

Investments and other assets
4,298.9

 
331.4

 
(4,064.1
)
 
566.2

Notes receivable from affiliates, net
762.8

 
—

 
(762.8
)
 
—

Total assets
$
11,297.5

 
$
5,993.2

 
$
(5,278.5
)
 
$
12,012.2

Liabilities and Stockholders’ Equity
 

 
 

 
 

 
 

Current liabilities
 

 
 

 
 

 
 

Current portion of long-term debt
$
478.8

 
$
3.5

 
$
—

 
$
482.3

Payables to affiliates, net
—

 
451.6

 
(451.6
)
 
—

Liabilities from coal trading activities, net
0.1

 
15.6

 
—

 
15.7

Accounts payable and accrued expenses
403.3

 
355.0

 
—

 
758.3

Total current liabilities
882.2

 
825.7

 
(451.6
)
 
1,256.3

Deferred income taxes
55.2

 
3.6

 
—

 
58.8

Notes payable to affiliates, net
—

 
762.8

 
(762.8
)
 
—

Other noncurrent liabilities
1,589.7

 
334.1

 
—

 
1,923.8

Total liabilities not subject to compromise
2,527.1

 
1,926.2

 
(1,214.4
)
 
3,238.9

Liabilities subject to compromise
8,152.8

 
—

 
—

 
8,152.8

Total liabilities
10,679.9

 
1,926.2

 
(1,214.4
)
 
11,391.7

Peabody Energy Corporation stockholders’ equity
617.6

 
4,064.1

 
(4,064.1
)
 
617.6

Noncontrolling interests
—

 
2.9

 
—

 
2.9

        Total stockholders’ equity
617.6

 
4,067.0

 
(4,064.1
)
 
620.5

Total liabilities and stockholders’ equity
$
11,297.5

 
$
5,993.2

 
$
(5,278.5
)
 
$
12,012.2




Case Name:    PEABODY ENERGY CORP, et al.                                        
Case Number:    (Jointly Administered) 16-42529                             14
UNITED STATES BANKRUPTCY COURT
FOR THE EASTERN DISTRICT OF MISSOURI


MOR-3    

UNAUDITED BALANCE SHEET
(Dollars in millions)

Notes to MOR-3:

See below for a breakdown of liabilities subject to compromise:
 
As of June 30, 2016
Debt
$
7,751.7

Interest payable
172.6

Trade payables

86.9

Postretirement benefit obligations (1)
33.7

Property taxes
10.8

Other accrued liabilities
97.1

Liabilities subject to compromise
$
8,152.8


(1) Balance includes liabilities for unfunded non-qualified pension plans, all the participants of which are former employees.



Case Name:    PEABODY ENERGY CORP, et al.                                        
Case Number:    (Jointly Administered) 16-42529                             15
UNITED STATES BANKRUPTCY COURT
FOR THE EASTERN DISTRICT OF MISSOURI


MOR-3a

UNUAUDITED STATEMENT OF CASH FLOWS
(Dollars in millions)

 
For the Month Ended June 30, 2016
 
Debtors
 
Non-Debtors
 
Eliminations
 
Consolidated
Cash Flows From Operating Activities
 
 
 
 
 
 
 
Net loss
$
(41.8
)
 
$
(34.1
)
 
$
35.5

 
$
(40.4
)
Loss from discontinued operations, net of income taxes
1.0

 
0.4

 
—

 
1.4

Loss from continuing operations, net of income taxes
(40.8
)
 
(33.7
)
 
35.5

 
(39.0
)
Adjustments to reconcile loss from continuing operations, net of income taxes to net cash provided by (used in) operating activities:
 
 
 
 
 
 
 
Depreciation, depletion and amortization
20.3

 
20.7

 
—

 
41.0

Noncash interest expense
4.2

 
0.1

 
—

 
4.3

Deferred income taxes
6.8

 
0.2

 
—

 
7.0

Noncash share-based compensation
1.4

 
—

 
—

 
1.4

Net gain on disposal of assets
(4.1
)
 
—

 
—

 
(4.1
)
Loss from equity affiliates and investment in subsidiaries
35.8

 
0.4

 
(35.5
)
 
0.7

Reorganization items, net
12.0

 
(0.9
)
 
—

 
11.1

Restricted cash
—

 
10.2

 
—

 
10.2

Changes in current assets and liabilities:
 
 
 
 
 
 
 
Accounts receivable
(36.4
)
 
(48.6
)
 
—

 
(85.0
)
Intercompany activity related to ARS program, net
24.5

 
(24.5
)
 
—

 
—

Inventories
10.3

 
1.5

 
—

 
11.8

Net assets from coal trading activities
0.1

 
(1.5
)
 
—

 
(1.4
)
Other current assets
(4.1
)
 
5.8

 
—

 
1.7

Accounts payable and accrued expenses
25.5

 
3.0

 
—

 
28.5

Asset retirement obligations
(1.0
)
 
1.1

 
—

 
0.1

Accrued postretirement benefit costs
(0.7
)
 
—

 
—

 
(0.7
)
Accrued pension costs
2.3

 
—

 
—

 
2.3

Other, net
13.4

 
(1.6
)
 
—

 
11.8

Net cash provided by (used in) continuing operations
69.5

 
(67.8
)
 
—

 
1.7

Net cash used in discontinued operations
(0.8
)
 
(0.3
)
 
—

 
(1.1
)
Net cash provided by (used in) operating activities
68.7

 
(68.1
)
 
—

 
0.6

Cash Flows From Investing Activities
 
 
 
 
 
 
 
Additions to property, plant, equipment and mine development
(8.9
)
 
(1.6
)
 
—

 
(10.5
)
Changes in accrued expenses related to capital expenditures
0.2

 
(0.9
)
 
—

 
(0.7
)
Proceeds from disposal of assets, net of notes receivable
6.6

 
—

 
—

 
6.6

Contributions to joint ventures
—

 
(21.0
)
 
—

 
(21.0
)
Distributions from joint ventures
—

 
18.3

 
—

 
18.3

Other, net
(0.1
)
 
0.1

 
—

 
—

Net cash used in investing activities
(2.2
)
 
(5.1
)
 
—

 
(7.3
)
Cash Flows From Financing Activities
 
 
 
 
 
 
 
Repayments of long-term debt
(0.5
)
 
(0.4
)
 
—

 
(0.9
)
Payment of deferred financing costs
(8.5
)
 
(1.1
)
 
—

 
(9.6
)
Distributions to noncontrolling interests
(0.1
)
 
(2.4
)
 
—

 
(2.5
)
Transactions with affiliates, net
(3.5
)
 
3.5

 
—

 
—

Net cash used in financing activities
(12.6
)
 
(0.4
)
 
—

 
(13.0
)
Net change in cash and cash equivalents
53.9

 
(73.6
)
 
—

 
(19.7
)
Cash and cash equivalents at beginning of period
695.8

 
598.2

 
—

 
1,294.0

Cash and cash equivalents at end of period
$
749.7

 
$
524.6

 
$
—

 
$
1,274.3



Notes to MOR-3a:

The beginning and ending cash balances do not include restricted cash.

In accordance with Peabody's securitization facility, most receivables generated from the Debtors' coal sales are sold to P&L Receivables Company, LLC, a non-Debtor entity. The cash collected relating to these receivables is paid to a lockbox held by P&L Receivables Company, LLC, and receipts in excess of amounts required to back outstanding letters of credit under the securitization facility are subsequently transferred to Peabody Energy Corporation in order to fund current operating expenses.

Case Name:    PEABODY ENERGY CORP, et al.                                        
Case Number:    (Jointly Administered) 16-42529                             16
UNITED STATES BANKRUPTCY COURT
FOR THE EASTERN DISTRICT OF MISSOURI



MOR-4

STATUS OF POSTPETITION TAXES

To the best of the Debtors' knowledge, as of the date hereof, (i) all taxes incurred postpetition by the Debtors (the "Postpetition Taxes") that are not subject to dispute or reconciliation are current and (ii) there are no material disputes or reconciliations with respect to the Postpetition Taxes. For the purpose of this attestation, "Postpetition Taxes" is meant to encompass severance taxes, coal excise taxes, sales and use taxes, employment and wage-related taxes, franchise taxes and fees, property taxes, foreign taxes, income taxes, and other taxes incurred postpetition by the Debtors.


STATUS OF INSURANCE COVERAGE AND PREMIUM PAYMENTS

To the best of the Debtors' knowledge, as of the date hereof, (i) all premiums for insurance programs maintained by the Debtors (the "Insurance Premiums") that are not subject to dispute or reconciliation are current and (ii) there are no material disputes or reconciliations with respect to the Insurance Premiums.


MOR-5

SUMMARY OF UNPAID POSTPETITION DEBTS; ACCOUNTS RECEIVABLE RECONCILIATION AND AGING; TAXES RECONCILIATION AND AGING

Notes to MOR-5:

The Debtors believe that the information as disclosed in MOR-3 appropriately summarizes the ending accounts receivable and accounts payable balances of the Debtors. Due to the volume of transactions related to customer billings and vendor payments, the following items will be made available upon request: (i) summary of unpaid postpetition debts; (ii) listing of aged accounts payable; and (iii) accounts receivable reconciliation and aging.

Due to the level of detailed records, (i) copies of IRS form 6123 or payment receipts, (ii) copies of tax returns filed during the reporting period and (iii) a taxes aging schedule will be made available upon request.



Case Name:    PEABODY ENERGY CORP, et al.                                        
Case Number:    (Jointly Administered) 16-42529                             17
UNITED STATES BANKRUPTCY COURT
FOR THE EASTERN DISTRICT OF MISSOURI


MOR-6                    

PAYMENTS TO RETAINED PROFESSIONALS
(Dollars in millions)
Professional
Role
Amount Paid During the Month Ended June 30, 2016
Cumulative Paid from April 13, 2016 through June 30, 2016
Debtors' Retained Professionals
 
 
 
Jones Day
Counsel
$
—

$
—

Armstrong Teasdale LLP
Local counsel
—

—

FTI Consulting, Inc.
Financial advisor
—

—

Kurtzman Carson Consultants, LLC
Claims, balloting and noticing agent
—

—

Lazard Freres & Co., LLC
Investment banker
—

—

Quinn Emanuel Urquhart & Sullivan
Special litigation counsel
—

—

Ernst & Young
Auditor and tax advisor
—

—

 
 
 
 
Official Committee of Unsecured Creditors' Retained Professionals
 
 
Morrison & Foerster LLP
Counsel
—

—

Curtis Mallet-Prevost, Colt & Mosle, LLP
Conflicts counsel
—

—

Spencer Fane LLP
Local counsel
—

—

Berkeley Research Group, LLC
Financial advisor
—

—

Jefferies LLC
Investment banker
—

—

Blackacre LLC
Independent expert
—

—

Total Payments to Retained Professionals
$
—

$
—



Notes to MOR-6:

Payments to ordinary course professionals and reimbursement of professionals engaged by the debtor-in-possession financing lenders are not included in MOR-6.


Case Name:    PEABODY ENERGY CORP, et al.                                        
Case Number:    (Jointly Administered) 16-42529                             18
UNITED STATES BANKRUPTCY COURT
FOR THE EASTERN DISTRICT OF MISSOURI


MOR-6                    
FIRST AND SECOND LIEN DEBT
As of June 30, 2016
(Dollars in millions)
Principal
 
Beginning Balance
 
Principal Advances, Net of Original Issue Discounts
 
Debt Issuance Costs
 
Repayments
 
Amortization of Debt Issuance Costs and Original Issue Discounts
 
Ending Balance
DIP Term Loan
 
$
461.5

 
$
—

 
$
(8.4
)
 
$
—

 
$
4.3

 
$
457.4

Revolver (1)
 
1,058.5

 
98.8

 
—

 
—

 
—

 
1,157.3

Term Loan B Facility
 
1,154.5

 
—

 
—

 
—

 
—

 
1,154.5

10% Senior Notes
 
962.3

 
—

 
—

 
—

 
—

 
962.3

Terminated derivative contracts (2)
 
257.3

 
—

 
—

 
—

 
—

 
257.3

Total
 
$
3,894.1

 
$
98.8

 
$
(8.4
)
 
$
—

 
$
4.3

 
$
3,988.8


(1) Principal advances under the Debtors' revolver include previously issued letters of credit drawn in support of other obligations.

(2) As a result of the Debtors' bankruptcy filings, counterparties to certain derivative contracts terminated the agreements shortly thereafter in accordance with contractual terms and the Debtors recorded liabilities equivalent to the termination value of each contract. Such liabilities are considered first lien debt.

ADEQUATE PROTECTION PAYMENTS
For the Month Ended June 30, 2016
(Dollars in millions)
Accrued Interest/Fees
 
Beginning Balance
 
Interest and Fees Incurred
 
Repayments
 
Ending Balance
DIP Term Loan
 
$
1.1

 
$
4.7

 
$
(4.8
)
 
$
1.0

Revolver
 
1.5

 
3.9

 
(2.9
)
 
2.5

Term Loan B Facility
 
8.4

 
2.6

 
(11.0
)
 
—

Terminated derivative contracts
 
—

 
0.6

 
(0.6
)
 
—

Letters of credit and surety
 
2.1

 
1.0

 
(0.1
)
 
3.0

Total
 
$
13.1

 
$
12.8

 
$
(19.4
)
 
$
6.5




Case Name:    PEABODY ENERGY CORP, et al.                                        
Case Number:    (Jointly Administered) 16-42529                             19
UNITED STATES BANKRUPTCY COURT
FOR THE EASTERN DISTRICT OF MISSOURI



MOR-7                    

DEBTOR QUESTIONNAIRE
Must be completed each month. If the answer to any of the questions is "Yes", provide a detailed explanation of each item. Attach additional sheets if necessary.
Yes
No
Explanation
1.
Have any assets been sold or transferred outside the normal course of business this reporting period?
 
X
 
2.
Have any funds been disbursed from any account other than a debtor in possession account this reporting period?
 
X
 
3.
Is the Debtor delinquent in the timely filing of any postpetition tax returns?
 
X
 
4.
Are workers compensation, general liability or other necessary insurance coverages expired or canceled, or has the Debtor received notice of expiration or cancellation of such policies?
 
X
 
5.
Is the Debtor delinquent in paying any insurance premium payments?
 
X
See MOR-4
6.
Have any payments been made on prepetition liabilities this reporting period?
X
 
The Debtors have made payments on prepetition liabilities as allowed by orders entered by the Court.
7.
Are any postpetition receivables (accounts, notes or loans) due from related parties?
X
 
Intercompany receivables per Note 7 to MOR
8.
Are any postpetition payroll taxes past due?
 
X
See MOR-4
9.
Are any postpetition State or Federal income taxes past due?
 
X
See MOR-4
10.
Are any postpetition real estate taxes past due?
 
X
See MOR-4
11.
Are any other postpetition taxes past due?
 
X
See MOR-4
12.
Have any prepetition taxes been paid during this reporting period?
X
 
The Debtors have made payments on prepetition taxes as allowed by orders entered by the Court.

13.
Are any amounts owed to postpetition creditors delinquent?
 
X
 
14.
Are any wage payments past due?
 
X
 
15.
Have any post petition loans been received by the Debtor from any party?
X
 
DIP Term Loan per MOR-6
16.
Is the Debtor delinquent in paying any U.S. Trustee fees?
 
X
 
17.
Is the Debtor delinquent with Court ordered payments to attorneys or other professionals?
 
X
 
18.
Have the owners or shareholders received any compensation outside of the normal course of business?
 
X
 


Case Name:    PEABODY ENERGY CORP, et al.                                        
Case Number:    (Jointly Administered) 16-42529                             20
UNITED STATES BANKRUPTCY COURT
FOR THE EASTERN DISTRICT OF MISSOURI



MOR-7                    

REPORT OF OTHER SIGNIFICANT EVENTS

On June 1, 2016, certain Debtors filed a complaint against Bowie Resource Holdings, LLC, to, among other things, recover a $20 million termination fee based on the non-consummation of a prepetition sale agreement.

On June 15, 2016, the Bankruptcy Court approved several motions, including motions that (i) established deadlines for the filing of proofs of claim and approved the form and manner of notice thereof, and (ii) established a key employee retention program. Also on June 15, 2016, the Bankruptcy Court approved the Debtors' retention of various professionals, including Quinn Emanuel Urquhart & Sullivan, LLP and Ernst & Young LLP. Further, at this hearing, the Bankruptcy Court approved the Official Committee of Unsecured Creditors' retention of various professionals, including Morrison & Foerster LLP, Spencer Fane LLP, Curtis, Mallet-Prevost, Colt & Mosle LLP, Blackacre LLC, Berkeley Research Group, LLC and Jefferies LLC.

On June 20, 2016, the Bankruptcy Court entered an order requiring parties to the "CNTA" adversary proceeding (No. 16-04068-399) to engage in non-binding mediation.  On June 22, 2016, Wilmington Savings Fund Society FSB filed its answer in the CNTA adversary proceeding.  On July 5, 2016, the Debtors filed an answer in the CNTA adversary proceeding to certain counterclaims.  On July 7, 2016, the Bankruptcy Court entered a stipulated order authorizing the Unsecured Creditors Committee and certain noteholders to intervene in the CNTA adversary proceeding. On July 12, 2016, the Bankruptcy Court entered an order appointing the Honorable James L. Garrity, Jr. as mediator in the CNTA adversary proceeding.

On July 7, 2016, the defendants in the adversary proceeding captioned Peabody Coalsales, LLC v. Arizona Public Service Company and PacifiCorp (No. 16-04066-399) filed a motion for dismissal of part of the Debtors' complaint. The Bankruptcy Court entered an order denying that motion the next day - on July 8, 2016.

On July 20, 2016, the Bankruptcy Court approved several motions, including motions that (i) granted certain entities limited relief from the automatic stay; (ii) established procedures governing the Official Committee of Unsecured Creditors' obligation to provide information to unsecured creditors; (iii) authorized the retention of KPMG, LLP as the Debtors' tax advisors; (iv) extended certain time periods, including the time period in which the Debtors' have the exclusive right to file a plan of reorganization; (v) authorized the rejection of certain executory contracts; and (vi) authorized the payment of certain secured and priority prepetition property taxes.




Case Name:    PEABODY ENERGY CORP, et al.                                        
Case Number:    (Jointly Administered) 16-42529                             21

PEABODY ENERGY CORP Reports