September 20, 2016
Curtis Retained as Conflicts Counsel to Creditors’ Committee of Peabody Energy Corporation in Billion Dollar Litigation Against Citibank
Curtis has been retained as conflicts counsel to the Official Committee of Unsecured Creditors (the “Committee”) in the Chapter 11 cases of Peabody Energy Corporation (“Peabody”). Peabody is the world's largest private-sector coal company with production located in the United States and Australia, serving customers in approximately 25 countries on six continents. Peabody’s Chapter 11 cases are pending before Judge Barry S. Schermer in the Bankruptcy Court for the Eastern District of Missouri. The Committee is co-chaired by Wilmington Trust Company, as indenture trustee, and Wagner Equipment Company.
Curtis has been engaged primarily to handle a billion plus dollar dispute with Peabody’s pre-petition lenders regarding the proper calculation of claims secured by Peabody’s principal properties. The litigation involves a contractual dispute and issues related to the proper interpretation of generally accepted accounting principles as applied to certain of Peabody’s prepetition debt. The Committee’s stance in litigation is that claims secured by Peabody’s principal properties should be valued at almost US$ 1 billion less than the secured claim asserted by prepetition secured lenders.
In addition to the co-chairs, the Committee includes Wilmington Savings Fund Society, FSB, as indenture trustee, United Mine Workers of America 1974 Pension Plan and Trust, the Pension Benefit Guaranty Corporation, Kinder Morgan, Inc., and Dyno Nobel Inc. Morrison & Foerster LLP is serving as lead counsel to the Committee.
The Curtis team is being led by Restructuring and Insolvency Partner Steven J. Reisman, Litigation Partners Eliot Lauer, Peter J. Behmke, and Michael J. Moscato, Restructuring and Insolvency Counsel Cindi M. Giglio and Litigation Associate Julia B. Mosse.
Curtis has developed a national reputation as the leading law firm in conflicts counsel engagements in large and complex Chapter 11 restructurings on both the debtor and creditors’ committee sides.