Arch Coal Lenders Balk at Swap Deal, Interest Payment Looms
- Arch has sought debt exchange to buy time, conserve cash
- Lenders concerned their holdings would be devalued in swap
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Arch Coal Inc. is under mounting pressure to get a grip on its dwindling cash.
The miner is saddled with $5.1 billion of debt and has failed to clinch a deal with creditors to swap existing bonds for new securities with longer maturities, which would help the company cut its obligations and ride out a commodities slump.