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Patriot Coal files new reorganization plan in US Bankruptcy Court

Coal News - Published on Thu, 31 Oct 2013

Bloomberg reported that Patriot Coal Corporation has revised its reorganization plan, as expected, ahead of a key bankruptcy hearing next week.

The new plan, filed Saturday in US Bankruptcy Court in St. Louis, incorporates agreements the Creve Coeur based coal producer reached with the unsecured creditors committee as well as with the United Mine Workers of America.

Assuming a judge approves the company's amended disclosure statement on schedule, a confirmation hearing for approval of the plan will take place December 17th, clearing the way for the company's emergence from federal bankruptcy protection.

Funding for Patriot's plan comes in part from USD 250 million in 2 rights offerings in which Knighthead Capital Management LLC provides a backstop by agreeing to purchase securities not taken by other creditors.

The offerings for second-lien senior notes and warrants are being extended to holders of senior notes, convertible notes, and general unsecured creditors who qualify as so-called accredited investors.

To participate, creditors must file papers showing their eligibility by November 27th and must subscribe for the offering by December 10th.

Financing of USD 150 million more comes from Patriot's former parent, St. Louis-based Peabody Energy Corporation, and also from Creve Coeur based Arch Coal Inc.

In addition, the Peabody settlement will provide USD 310 million over four years for the trust providing health benefits for retirees.

Source – Bloomberg


Posted By : admin on Thu, 31 Oct 2013
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