This article discusses how a coal company removed liabilities and debt from its balance sheet, by splitting into 2 companies and declaring bankruptcy. Now, after emerging from bankruptcy, the two companies plan to recombine. The bankruptcy allowed one company to escape about $120 million of reclamation liabilities while the second company eliminated $167 million in liabilities for reclamation, water treatment and other issues.
So who gets stuck with the reclamation, water issue, etc., costs? Go ahead, guess who.