Patriot Coal announced the Bankruptcy Court will enter an order confirming Patriot’s plan of reorganization. In doing so, the Court approved the transactions to sell a substantial majority of Patriot’s operating assets to Blackhawk Mining and to sell substantially all of its remaining assets and liabilities to an affiliate of Virginia Conservation Legacy Fund (VCLF).

In a related Wall Street Journal report, Patriot’s lenders were said to have urged the bankruptcy court judge to deny the coal miner’s sale and the debt-repayment plan, arguing that its Chapter 11 case was unfairly run for the benefit of key creditor Knighthead Capital Management.

Bob Bennett, president and chief executive officer of Patriot, said, “We are pleased to have received Court approval for the transactions with Blackhawk and VCLF, which we believe represent the best possible outcome for Patriot and its stakeholders. These transactions preserve jobs, help ensure environmental obligations are handled in a responsible manner and maximize value for creditors.”

The transactions are expected to close within a few weeks, and are subject to certain other customary closing conditions. Until the transactions close, Patriot’s mining operations will continue to operate independently of Blackhawk and VCLF. Patriot continues to expect that a majority of Patriot employees at its mining operations will be offered employment once the transactions are completed.

Centerview Partners is serving as financial advisor and investment banker for Patriot, and Kirkland & Ellis is serving as legal advisor to Patriot. Alvarez & Marsal is serving as chief restructuring officer for Patriot.

Scott Depot, WVA-based Patriot Coal is a producer and marketer of coal in the eastern United States, with 8 active mining complexes in Northern and Central Appalachia.