Patriot Coal said the bankruptcy court has confirmed the company’s plan of reorganization despite protest from lenders that said the case was unfairly run for the benefit of Knighthead Capital Management.
The Bankruptcy Court has cleared Patriot Coal to sell its remaining assets, including its West Virginia Federal mining complex according to the Wall Street Journal.
The Wall Street Journal reported an affiliate of Virginia Conservation Legacy Fund is in line to acquire two Patriot mining complexes in West Virginia.
The Deal reported that Patriot Coal filed a disclosure statement for its liquidation plan, which is predicated on the sale of a substantial majority of the debtor’s assets to Blackhawk Mining.
Patriot Coal is engaged in active negotiations for the sale of substantially all of the company’s operating assets to a strategic partner.
Patriot Coal announced that the U.S. Bankruptcy Court for the Eastern District of Missouri has confirmed the company’s plan of reorganization. Barclays and Deutsche Bank were said to be on call to arrange the exit financing.
Patriot Coal announced that Barclays and Deutsche will be lead arrangers for a $250 million term loan facility and a $125 million ABL.
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.
Patriot Coal announced in documents filed with the U.S. Bankruptcy Court it reached an agreement with Knighthead Capital Management to financially sponsor Patriot’s emergence from bankruptcy.