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Peabody’s debt troubles date back to a $5.1 billion leveraged buyout of Australia’s Macarthus in 2011, as they sought to position themselves as the major supplier of metallurgical coal for Asian steel mills.

Glenn Kellow, the Peabody chief executive, said: “This was a difficult decision, but it is the right path forward for Peabody … this process enables us to strengthen liquidity and reduce debt, build upon the significant operational achievements we’ve made in recent years and lay the foundation for long-term stability and success in the future.”

The case has been filed in the eastern district of St Louis, Missouri.