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Potential new bidder for Patriot Coal

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World Coal,

Patriot Coal Corp. could have a new bidder for the bulk of its assets according to Reuters. The talks are reportedly in an “advanced” stage according to the company’s attorney, Stephen Hessler, and if the anonymous party had put in a bid, it is expected to be alike to the deal proposed by Blackhawk Mining.

Blackhawk’s bid proposed it would issue new debt to Patriot’s creditors in exchange for the bulk of the company’s mines. However, this bid is currently being revised and the final details will be in the plan that Patriot has said it will file on Friday.

This new bidder has the potential to create a competitive auction according to Hessler. Bids for the company’s assets are due Friday. If the new bid or further bids are received, Patriot will hold an auction on Monday.

Patriot Coal has reported it is rapidly running out of cash and therefore needs to close its sale and confirm a plan to exit bankruptcy promptly. A confirmation hearing for 5 October has been scheduled by the Judge, Keith Phillips, overruling creditors who indicated they needed extra time to investigate if the bankruptcy exit plan.

Edited from source: Reuters by Harleigh Hobbs

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