Peabody Energy’s Bankruptcy Plan Affirmed By Appeals Court

Peabody Energy Corp. won’t see its 2017 bankruptcy reorganization unravel, as a federal appeals court rejects a challenge by an investor group that preferred a rival plan.

The coal mining company proposed its plan, which cut about $5 billion of debt and prevented it from facing liquidation, in good faith and follows bankruptcy code requirements, a panel of judges at the U.S. Court of Appeals for the Eighth Circuit said in an Aug. 9 decision.

An ad hoc group of Peabody creditors complained that they were disadvantaged under the plan as other creditors received the right to buy $1.5 billion ...