Coal Tattoo

Patriot Coal files Chapter 11 — again

patriotlogoHere’s the new filing this morning in U.S. Bankruptcy Court in Richmond, Va., from Patriot Coal Corporation.

This comes only a few weeks after Patriot announced a major management shakeup (see here and here), and as the company was working with financial advisers to come up with a restructuring plan.

And, obviously, it wasn’t so incredibly long ago that Patriot emerged from a previous Chapter 11 bankruptcy process. In a press release just issued, Patriot said that the company “intends to complete its review of strategic alternatives and present a value-maximizing restructuring plan to the Court as quickly as possible.”

The release continued:

Patriot expects its customer shipments and mining operations to continue in the ordinary course during the restructuring process. The Company has received a commitment for $100 million in “debtor in possession” (“DIP”) financing led by a consortium of the Company’s secured debt holders to support its continued operations. Upon approval by the Court, the DIP financing, combined with cash generated from ongoing operations will provide sufficient liquidity to support the business during the restructuring process.

Bob Bennett, President and Chief Executive Officer of Patriot, said:

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.  Patriot is dedicated to operational and environmental excellence and, as always, we remain committed to operating safely and serving our customers throughout this restructuring process. We greatly appreciate the continued support of our customers and our suppliers and the ongoing hard work of our employees.