Coal giant files for bankruptcy

A major U.S. coal mining company is seeking bankruptcy protection despite a flurry of regulatory breaks that its chief executive pushed for — and received — from the Trump administration.

Ohio-based Murray Energy Holdings Co. filed for Chapter 11 bankruptcy reorganization Tuesday, joining a growing list of struggling mining businesses as utilities switch away from coal to cheaper and less-polluting renewable energy or natural gas.

The filing is a significant political failure for President Trump, who had sought to end what he called a “war on coal” by Democrats as a key part of his campaign and early presidency. Privately held Murray Energy was the country’s fourth-largest coal producer last year, accounting for 6% of total production, according to the Energy Information Administration.

Murray Energy’s move was necessary to access cash and best position it for long-term success, said former Chief Executive Robert Murray.

As CEO, Murray was averse to filing for bankruptcy, and in recent years he criticized other coal operators that chose to streamline. In a 2016 interview, he lamented the number of bankruptcies in the industry and how his competitors were able to shed debt and reenter the market.

Murray, who on Tuesday was replaced as CEO by Robert Moore, has tied his fortunes to Trump. He hosted a fundraiser for the president in July that had been expected to raise $2.5 million. He has flexed his influence at the local level as well.

Murray has called climate change an “environmental hoax” and is a proponent of Trump’s regulatory actions aimed at scaling back environmental protections.

But market competition from cheaper natural gas and renewables have hit the coal industry hard, driving U.S. coal consumption to its lowest levels since the Carter administration.