The company has been pursuing multiple actions for some time as part of its new financial objectives to maintain liquidity and reduce debt, he recently told an analysts’ meeting.

“There is no question that the industry backdrop has been challenging,” he said as reported in investment website Seeking Alpha.

“Not to mention the fact that several of our peers have filed for bankruptcy in the last year. Peabody is not immune to these external pressures as evidenced by our earnings, cash flows, and pricing of our public instruments. That doesn't change, though, the underlying strength of a platform that continues to excel on many levels.

“Along with our advisors, we've engaged in discussions with holders of several tranches of our debt to evaluate potential financial alternatives to preserve liquidity and delever the balance sheet. These discussions are towards several ends. We seek to reduce interest expense, which in 2015 was the largest part of our fixed charges.

“[We will] capture discount based on the levels of our public debt prices and extend maturities to offer a greater runway toward longer term improvements in the coal markets.”

Peabody has explored new debt instruments, including potential debt exchanges, debt buybacks, and new financing, Kellow said.

“We recognize that these are complex challenges, particularly given the volatility in the coal and capital markets,” he said. “While no agreements have been reached at this time, we expect to continue discussions with debt holders where appropriate. We will give strong consideration to elements that include economics, runway, interest expense, and timing.

“Our strategic focus on coal regions gives us the ability to manage basins as portfolios as opposed to individual mines. And, whilst we fully expect 2016 to be another trying year for the US coal industry, we continue to believe that our leading positions in the lowest-cost basins will best position us to benefit from any rise in natural gas prices and coal demand over time.”