“We thank our shareholders for their continued support as we work through these challenging times," Peabody president and CEO Glenn Kellow said.

“Peabody is advancing further initiatives across our global platform with an intense focus on operational excellence, lean organisation, portfolio management and financial strength.”

The reverse stock split is set to kick in at the close of business on September 30. The stock will start trading on a split-adjusted basis at market open the next day.

Every 15 shares of common stock shareholders own will be combined into one share of common stock, and the number of outstanding shares will be reduced from about 278 million to roughly 19 million.

Peabody said it would not issue fractional shares in connection with the reverse stock split and that shareholders who would otherwise hold fractional shares following the reverse stock split would receive cash – without interest and subject to applicable withholding taxes – in lieu of such fractional shares.

“The sum will be based on the net proceeds, after customary brokerage commissions and other expenses, resulting from the transfer agent aggregating and selling all fractional share interests into the market,” Peabody said.

“Such proceeds will be paid on a pro rata basis, depending on the fractional amount of shares owned.”