The Australian operations of coal giant Peabody Energy will continue to trade as normal despite the group filing for Chapter 11 bankruptcy protection in the United States.
The long-expected move comes in the wake of a sharp fall in coal prices that left the company unable to service its debt load of about $US6.3 billion, much of which was created during a debt-fuelled expansion into Australia. 
"Through this process, the company intends to reduce its overall debt level, lower fixed charges, improve operating cash flow and position the company for long-term success, while continuing to operate under the protection of the court process," the miner said in a statement on Wednesday.
"All of the company's mines and offices are continuing to operate in the ordinary course of business and are expected to continue doing so for the duration of the process."
"No Australian entities are included in the filings, and Australian operations are continuing as usual," the company said.
Peabody said its Australian operations had in 2015 earned more than the prior year, despite falls in the price of coal.
Federal Resources Minister Josh Frydenberg said he had been reassured that Peabody's Australian operations would continue as per usual. It employs 3500 workers in Australia, including contractors.
Chapter 11 is understood to offer much more protection to ailing companies than the administration process traditionally undertaken by struggling companies in Australia, and it is for that reason that Peabody's Australian assets were not included.
The company will now try to restructure is debt and restore its balance sheet.
Minerals Council coal expert Greg Evans said there were few, if any implications for the Australian coal industry out of Peabody's filing.
"The outlook for the Australian coal sector is slowly improving. Official projections released last week project steady growth in Australia's coal exports through to 2020-21."
Peabody's debt troubles date back to its $US5.1 billion leveraged buyout of the Ken Talbot-founded Macarthur Coal in 2011, at the peak of the coal boom. Peabody also acquired Tony Haggarty's Excel Coal for $2 billion in 2006.
The deals saw Peabody become a supplier of metallurgical coal for Asian steel mills, but as demand for metallurgical coal fell, particularly in China, Peabody's financial woes intensified.
In a filing last month, Peabody told regulators that it had $US1.43 billion of surety bonds in place as of   December 31.
Peabody said $US592.3 million of that was for mine rehabilitation, while $US75 million was for workers compensation.