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Patriot Coal Receives OK to Solicit Creditor Approval Reorg Plan

November 07, 2013, 07:15 AM
Filed Under: Bankruptcy

Patriot Coal Corporation announced that the Bankruptcy Court for the Eastern District of Missouri has confirmed that thecompany's Disclosure Statement contains the information necessary to enable creditors to vote on the company's Plan of Reorganization. Following today's ruling, Patriot will immediately commence the process to solicit votes on its Plan of Reorganization as outlined in filings with the bankruptcy court.

The Court today also authorized Patriot to move forward with the proposed Rights Offerings in conjunction with the Plan of Reorganization.  As previously announced, the Rights Offerings will be fully backstopped by Knighthead Capital Management, LLC and certain affiliates.  Additionally, the Court approved an agreement with leading 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 (Peabody) and Arch Coal, Inc. (Arch).   

"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 Chief Executive Officer 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."

Patriot Coal Corporation is a producer and marketer of coal in the eastern United States, with [10] active mining complexes in Appalachia and the Illinois Basin.  Patriot ships to domestic and international electricity generators, industrial users and metallurgical coal customers, and controls approximately 1.8 billion tons of proven and probable coal reserves.

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