Patriot Coal announced that the Bankruptcy Court for the Eastern District of Missouri has approved the company to seek a creditor vote on its Plan of Reorganization.

The court also authorized Patriot to move forward with the proposed rights offerings in conjunction with the plan of reorganization. The Rights Offerings will be fully backstopped by Knighthead Capital Management and certain affiliates.

Additionally, the court approved an agreement with financial institutions Barclays and Deutsche Bank to arrange new exit financing and post-emergence credit facilities of $576 million. Finally, the court approved the company’s previously announced settlements with Peabody Energy Corporation and Arch Coal.

“Today’s actions by the court represent important milestones on Patriot’s path to emergence as a strong, well-capitalized competitor in the coal industry,” said Patriot President and CEO Bennett K. Hatfield. “Taken together, the rights offering and the settlements with Peabody and Arch lay the foundation for completion of our exit financing in the next few weeks. We remain on schedule for emergence from bankruptcy in mid to late December.”