Thursday, April 14, 2016

Obama's War on Coal: Largest coal company bankrupt, railroad layoffs

Colorado coal train
"If somebody wants to build a coal-fired power plant, they can. It's just that it will bankrupt them." Barack Obama in 2008.

And Obama is getting his way.

From the St. Louis Post-Dispatch:
Weeks after signaling that a heavy debt load and weak coal demand could push it into bankruptcy, Peabody Energy surprised few when it filed for Chapter 11 protection here on Wednesday.

The fall of the world's largest coal company is the starkest example of the plunge in the coal industry's fortunes over the last few years. Yet with the grace period on a skipped interest payment ending this week and the failure of a big mine sale Peabody was counting on to raise cash, the news wasn’t unexpected.

"All signs were pointing to it coming," said Kris Inton, an analyst at Chicago-based Morningstar.
Meanwhile in North Platte, Nebraska, Obama's War on Coal has forced America's largest railroad to layoff 73 workers.

From the Omaha World-Herald:
Union Pacific confirmed the furloughs from its transportation department, which includes train, engine and yard employees. Calli B. Hite, director of corporate relations and media for Union Pacific, indicated that the furloughs were tied directly to the decrease in coal shipments. Other shipments are also down, including grain, metal products and food.

The furloughs consisted of 25 electricians, 29 machinists, 14 firemen-oilers and five sheet-metal workers, Thiessen said.

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