Less than two years after emerging from bankruptcy, Patriot Coal is heading back after filing for voluntary restructuring under Chapter 11 of the US Bankruptcy Code, the company said today in a press release.
It also said that it was in talks with an unnamed buyer for the sale of most of its operating assets.
Shipments and mining operations are expected to continue during the restructuring process, supported by US$100 million of ‘debter in possession’ (DIP) funding from a consortium of secured debt holders. This, along with cash generated from ongoing operations, should provide sufficient liquidity to support the company through the restructuring process.
“In light of the challenging market conditions, and after a comprehensive review of our alternatives, the board and management team have determined that this process represents the best path forward for Patriot and its stakeholders,” said Bob Bennett, President and CEO of Patriot, in the press release.
Written by Jonathan Rowland.
Read the article online at: https://www.worldcoal.com/mining/12052015/uncertainty-again-over-patriot-coals-future-2262/