A dark and dirty descent into bankruptcy was the story of Cloud Peak Energy Inc., as America's coal industry continues to hover in a volatile space.
Based in Wyoming's Powder River Basin, Cloud Peak made news in March by skipping a $1.8 million interest payment, triggering talks of the need for Chapter 11 protection. As of Dec. 31, the company's Cloud Peak Energy Resources LLC subsidiary owed $56.4 on 2024 bonds and $290.4 million on second-lien debt maturing in 2021, according to a fling with the U.S. Securities and Exchange Commission.
Our proprietary FRISK® score was able to capture Cloud Peak's drop into the "red zone" of risk starting in the summer of 2018, giving creditors a competitive advantage to pivot away from this counterparty months before scary headlines arrived:
In this High Risk Report, we take a look at additional factors which caused Cloud Peak to crumble, including their intense decrease in working capital and unfavorable rates of return in late 2018 and 2019.
Download the free report to learn more.
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