RE: There is no way they can start up again "who would step up to the plate and save them..."
Let's say that Peabody bid
.50 per share, (to be clear, not a price that I would want to sell at!)
Then, most of the under-water stock options would not be exercised. Peabody would be able to get the company for 210 mm shares x
.50 = $105 million, + $50 million in debt, - $16 million of cash = $139 million.
Peabody could payoff the high coupon debt. Peabody could use its huge marketing machine, (including its global dedicated coal trading operation) to sell Cline's coal. Peabody could work to expand shipping options out of the Gulf. When deemed prudent, Peabody could ramp up production efficiently and fairly quickly. Peabody could get a long wall up and running by 2016.
I feel strongly that Cline stock will never go to zero. I think there's equity value no matter what happens over the next 6-9 months.