Patriot Coal Corporation announced Monday that it has filed voluntary petitions for reorganization under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the Southern District of New York, according to a news release from Patriot Coal Corporation.
Patriot officials said it has taken this action in order to undertake a comprehensive financial restructuring and said it expects its mining operations and customer shipments to continue in the ordinary course throughout the reorganization process.
“The coal industry is undergoing a major transformation and Patriot’s existing capital structure prevents it from making the necessary adjustments to achieve long-term success,” said Patriot Chairman and Chief Executive Officer Irl F. Engelhardt. “Our objective is to use the reorganization process to address important issues in an orderly way and make the Company stronger and more competitive.”
Patriot has obtained a commitment for $802 million in debtor-in-possession financing from Citigroup Global Markets Inc., Barclays Bank PLC, and Merrill Lynch, Pierce, Fenner & Smith Incorporated as joint lead arrangers, according to the news release.
The new financing and cash generated from Patriot’s ongoing operations will be used to support the business during the reorganization process, upon approval by the Bankruptcy Court, officials said.
For more information, visit Patriot’s website at http://www.patriotcoal.com or call Patriot’s Restructuring Hotline at 877-600-6531.
Court filings and other documents related to the reorganization proceedings are available on a separate website administered by Patriot’s claims agent, the Garden City Group, at http://www.PatriotCaseInfo.com.