Arch Coal Inc., the coal miner enmeshed in a fight with its senior lenders, plans to make an $18.1 million interest payment owed to junior-ranked bondholders Thursday, according to two people with knowledge of the matter.
The payment will be made to holders of the company’s 7.25 percent notes due 2020, said the people, who requested anonymity because the information hasn’t been made public.
Arch Coal, which operates the West Elk Mine in Colorado, has been battling with its senior lenders to gain approval for an exchange of as much as $2.38 billion of junior-ranked debt that would help preserve its cash. The bond on which the Oct. 1 payment is owed is one of several securities that could be exchanged for higher-lien debt.
Logan Bonacorsi, a spokeswoman for the St. Louis-based company, didn’t immediately respond to phone and e-mail messages seeking comment.
