Bloomberg Law
Free Newsletter Sign Up
Bloomberg Law
Welcome
Go
Free Newsletter Sign Up

U.S. Bankruptcy Tracker: Coal’s a Canary in the Mine for Energy

Dec. 8, 2020, 2:00 PM

Coal is suffering one of its worst years ever for bankruptcy, highlighting credit risk in the U.S. energy sector.

Four of this month’s seven Chapter 11 filings were from energy -- including two coal producers -- as troubled debt from the sector continued to grow, despite easing distress in other industries. Seven large U.S. coal companies have sought protection from creditors this year.

The disruption is likely to persist amid a transition to alternative energy, given the high cost of extracting coal and changing policies from a new U.S. administration, according to Ryan Dahl, partner at law firm Ropes ...