Subsequent to a competitive auction, Patriot Coal Corp. will go ahead with selling a substantial majority of its operating assets to Backhawk Mining. The company will ask for Court approval of the transaction at a Bankruptcy Court hearing scheduled for 5 October 2015. The transaction is subject to court approval and confirmation of Patriot's proposed plan of reorganisation, as well as certain other customary conditions.
Bob Bennett, President and CEO of Patriot, stated: "The auction process was robust and competitive. We are pleased with the results of the auction and believe that the proposed transaction with Blackhawk is in the best interest of Patriot and its employees and stakeholders. We look forward to obtaining confirmation of our plan and consummating this transaction and are gratified to have a solution that preserves jobs in West Virginia, helps ensure environmental obligations are handled in a responsible manner and maximises value for creditors. As we work to complete the sale process, we remain committed to operating safely and serving our customers."
Coronado Coal also submitted a qualified bid and participated in the auction. It has been selected as the backup bidder if the Blackhawk transaction is not approved.
Edited from press release by Harleigh Hobbs
Read the article online at: https://www.worldcoal.com/coal/23092015/blackhawk-mining-wins-bid-for-patriot-coal-assets-2897/