Cloud Peak Energy Inc.

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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:

Cloud Peak Energy Inc. FRISK® score
Cloud Peak Energy Inc.'s FRISK® score sunk to a "1" in late 2018.

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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CreditRiskMonitor Bankruptcy Case Studies provide post-filing analyses of public company bankruptcies. Our case studies educate subscribers about methods they can apply to assess bankruptcy risk using CreditRiskMonitor’s proprietary FRISK® score, robust financial database, and timely news alerts.

In nearly every case, a low FRISK® score gave our subscribers early warning of financial distress within a one-year time horizon. CreditRiskMonitor's proprietary FRISK® score predicts bankruptcy risk at public companies with 96% accuracy. The score is formulated by a number of indicators including stock market capitalization and volatility, financial ratios, bond agency ratings from Moody’s, Fitch and DBRS, and crowdsourced behavioral data from a subscriber group that includes 35% of the Fortune 1000 and thousands more worldwide.

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