Peabody debt dispute fizzles as coal prices rise

By Tracy Rucinski CHICAGO (Reuters) - U.S. coal producer Peabody Energy Corp said on Wednesday it is closer to exiting bankruptcy, with a debt dispute between creditors fizzling as a recent increase in coal prices boosts their chances for recovery. Peabody filed for Chapter 11 protection in April, after a sharp decline in coal prices left it unable to service $10 billion of debt. A creditor fight launched by some of Wall Street's most litigious investment funds, Aurelius Capital Management and E