ST. LOUIS, Jan. 15, 2017 /PRNewswire/ -- Attempts by parties to appoint an equity committee have generated media reports based on inaccuracies and speculation raised by those parties. This statement is intended to address questions regarding steps leading up to Chapter 11, the request for an equity committee and the plan around employee emergence grants:



    --  From the start, Peabody's new management team has relentlessly worked to
        maximize the value of the enterprise across operational, corporate,
        financial and portfolio dimensions.  As detailed in the company's
        disclosures and court filings, multiple avenues were pursued in light of
        the long period of impact from brutal industry conditions.





    --  Following the Chapter 11 filing, Peabody filed its business plan in
        August 2016, per the terms of its DIP credit agreement, and updated it
        for recent market events in December 2016, following improved near-term
        industry fundamentals. The company will be filing the latest financial
        projections as part of the disclosure statement.  Reflecting that
        business plan, the company filed a plan of reorganization in December
        that represented broad consensus among stakeholders, and that consensus
        has grown in recent weeks.  The plan of reorganization provides for only
        partial recoveries for unsecured claims, which by law means that
        shareholders will not receive a recovery.Peabody has been consistent and
        transparent for many months in communicating that, as with most Chapter
        11 processes, current equity holders are unlikely to receive any value
        and their shares are likely to be cancelled.  Certain parties sought
        equity committee formation in late 2016, and the U.S. Trustee declined
        the request.  The matter will now properly be heard by the U.S.
        bankruptcy court.
    --  The plan of reorganization also proposes an employee incentive program
        that includes a one-time award enabling every Peabody employee to own a
        piece of the new company over time.  Like the rest of the plan, it is
        subject to a creditors' vote and court approval.  Including such a
        program in a plan is not unusual, nor is the amount (only a fraction of
        which would apply to grants at emergence). What is unusual, though, is
        that the company proposes granting every employee a certain amount of
        restricted stock or equivalent.

The company recognizes that any Chapter 11 process is challenging for a number of stakeholders. While objections are a natural part of the process, Peabody has advanced a plan of reorganization that it believes maximizes the value of the enterprise. We have been pleased by the broad consensus already obtained and the growing momentum as we work toward ultimate emergence.

Contact:
Vic Svec
314.342.7768

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SOURCE Peabody Energy