Much to the surprise of many, the business prospects for Peabody Energy have improved, says BDC Reporter, with the company expected to emerge from bankruptcy is mid-December.
Lenders who were expecting to book a realized loss may now see a full recovery of their loans, says BDCR. Among those lenders is American Capital Senior Floating (ACSF +1.3%).
BDCR expects the value of ACSF's investment in Peabody to be marked up in Q4, and his credit rating - currently at 5 (anticipating a realized loss) - is being shifted to 3 (chances of full recovery greater than chances of a loss).
Previously: Peabody Energy says closer to bankruptcy exit as coal prices rise (Nov. 23)