Patriot Coal Corp., a producer and marketer of coal in the US, has announced that it will start a plan of reorganisation. In doing so, the Court approved the transactions to sell a substantial majority of Patriot's operating assets to Blackhawk Mining LLC and to sell substantially all of its remaining assets and liabilities to an affiliate of Virginia Conservation Legacy Fund Inc.
Bob Bennett, President and CEO of Patriot, said, "We are pleased to have received Court approval for the transactions with Blackhawk and VCLF, which we believe represent the best possible outcome for Patriot and its stakeholders. These transactions preserve jobs, help ensure environmental obligations are handled in a responsible manner and maximise value for creditors. I want to thank our employees for their hard work and dedication throughout the sale process. I also want to thank our restructuring professionals and parties in interest, who worked in a dedicated and cooperative manner to help us achieve this successful outcome. We look forward to completing the transactions in the coming weeks and concluding the chapter 11 process."
The transactions are expected to close within a few weeks, and are subject to certain other customary closing conditions. Until the transactions close, Patriot's mining operations will continue to operate independently of Blackhawk and VCLF. Patriot continues to expect that a majority of Patriot employees at its mining operations will be offered employment once the transactions are completed.
Centerview Partners LLC is serving as financial advisor and investment banker for Patriot, and Kirkland & Ellis LLP is serving as legal advisor to Patriot. Alvarez & Marsal is serving as Chief Restructuring Officer for Patriot.
Edited from press release by Angharad Lock
Read the article online at: https://www.worldcoal.com/coal/09102015/patriot-coal-announces-plan-of-reorganisation-2993/