Patriot Coal Files for Chapter 11 Bankruptcy
“The coal industry is undergoing a major transformation and Patriot’s existing capital structure prevents it from making the nec-essary adjustments to achieve long-term success,” said Patriot Chairman and CEO Irl F. Engelhardt. “Our objective is to use the reorganization process to address important issues in an orderly way and make the com-pany stronger and more competitive.”
The court granted Patriot interim approval of its $802 million Debtor-in-Possession (DIP) financing. The DIP financing and cash from the company’s ongoing operations will provide Patriot with financial flexibility to operate its business in the ordinary course, including funding post-petition payments to suppliers and meeting other customary business obliga-tions, during the reorganization process.