Peabody Energy (NYSE:BTU) settled an SEC lawsuit and agreed to 'Lie Less' late last year according to this article. It states, N.Y. State Attorney General, Eric Schneiderman considers the settlement a great victory. "Let's be honest (the room erupts in laughter), we're never going to get these guys on any real charges, as both the state and federal legislatures are in their pocket. So, isn't it better to know, going forward, that at least half of what they tell us is true, rather than nothing?"
This article from the office of N.Y. Attorney General Eric Schneiderman also from late last year spoke about how Peabody Energy Violated State Laws Prohibiting False And Misleading Conduct In Connection With Securities Transactions and Has A Responsibility To Be Honest With Its Investors.
Anyone who knows me knows I have been fighting hard for the rights of the Peabody Energy stockholder who recently saw their shares cancelled and the retail noteholders who typically saw 75% of the value of their bonds disappear since last December thanks to the Peabody Energy reorganization. I have been posting my issues with the Peabody Energy reorganization plan regularly on SeekingAlpha and have been in constant communication with the media and regulators including the SEC, USDOJ, and the NY and MO Attorney General.
I was enthusiastic for a moment when an official looking manila envelope recently arrived with a return address of Joshua D. Hawley, Attorney General of Missouri. When I looked at the contents, I saw a cover letter from Sue Reed, a nice lady at the Attorney General of Missouri's office who responds whenever I email her new information on the Peabody Energy reorganization. I have sent her everything from documentation the chapter 11 filing could have been avoided, there was unequal treatment among holders of the same security in the Peabody Energy reorganization, stockholders were not treated equally and some received better treatment than retail noteholders, the Peabody Energy Senior Management Team that drove Peabody into bankruptcy were getting excessive bonuses, etc. They could probably fill a football field with all my complaints.
Ms. Reed enclosed a letter from a Thomas W. Dietrich, Associate General Counsel of Peabody Energy, where none of my complaints were addressed. It went on for three pages where it kept saying the court approved everything. In other words, it was ok to pick the pockets of the Peabody Energy stockholders and retail noteholders since the court approved it. I told Ms. Reed I was not ok with the Peabody Energy response and she said she will be discussing my complaints with the director of investigations. Hopefully I will make more progress with the Attorney General of Missouri's office.
There also is the unfinished business of former Peabody Energy retail noteholders seeking justice with their recent .06 and .21 recovery on their Peabody Energy 6s of 2018, 6.5s of 2020, 6.25s of 2021, and 7.875 of 2026 and no recovery I see on the 4.75 convertibles of 2066. Please message me on SeekingAlpha if you are a former Peabody Energy retail noteholders and you too would like to explore your options with me and other former Peabody Energy retail noteholders.
I sold most of my BTU shares after they were received as a result of the Peabody Energy retail notes cancellation and rights offering. I have a small amount of shares left in a small Fidelity account. My Peabody Energy notes, which were $.79 in December, have been cancelled and are worthless. My Peabody Energy investment has dropped $90,000 from the December pricing.
Disclosure: I am/we are long A SMALL AMOUNT OF BTU SHARES.
I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.