Arch Coal Inc (OTCMKTS:ACIIQ) recently announced that its amended plan of reorganization has been approved by the US Bankruptcy court of Missouri. The company filed for chapter 11, over 8-months ago. Under the amended plan, Arch Coal believes that it can emerge from bankruptcy in early October. The news has been well received by investors, as is evident by the performance of the stock. ACIIQ has gained more than $0.3 in terms of share value, since making the announcement.

The CEO of the company, John W. Eaves, stated that this was the final legal step in their restructuring plan. He also claimed that ACIIQ would emerge from this as a strong and well-positioned natural resource company, with a plan for value creation. Mr. Eaves also voiced his belief that the management has built a solid foundation for its long-term success. He also thanked the company’s employees, vendors and customers, for their dedication and support.

Earlier, Arch revealed that its amended plan received overwhelming support from its creditors. The amended plan was based on a settlement agreement that the company reached with certain senior lenders and the committee of Unsecured Creditors. It should be noted here that the plan would effectively eliminate an estimated $4.7 billion of debt, from ACIIQ’s balance sheet.

Arch Coal is considered to be a top producer of coal, for the global power generation and steel industries. Currently, the coal mining industry is experiencing a downturn, which is evident by the falling production estimates. A recent report, from the EIA, highlighted that the week ended, September 10, 2016, experienced a 6.2% decline in coal production, as compared to the week before. Moreover, the commodity is also losing its value in freight, as it is being replaced by shale oil. As such, if Arch Coal is to become strong financially, it will have to either capture a significant portion of the market or look for other endeavors.

Arch Coal Inc (OTCMKTS:ACIIQ) gained 53.7% in terms of share value, during the September 21 trading session, on a trade volume of 1.52 million, to reach a close at $0.615 per share.