UPDATE 2-Patriot Coal files Chapter 11 again, is in talks with buyer

Tue May 12, 2015 6:18pm EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

(Adds mine workers' statement, background, paragraphs 8-10)

By Tom Hals

May 12 (Reuters) - Patriot Coal Corp filed for bankruptcy protection on Tuesday, just 18 months after emerging from its previous Chapter 11, and said it was in negotiations with a potential buyer.

The Scott Depot, West Virginia-based company said it was suffering because of low energy prices.

To support its mining and marketing operations during the bankruptcy, Patriot has a commitment from its current secured creditors to provide up to $100 million in financing.

The company emerged from its previous Chapter 11 bankruptcy in December 2013 after filing in July 2012.

"In light of the challenging market conditions, and after a comprehensive review of our alternatives, the board and management team have determined that this process represents the best path forward for Patriot and its stakeholders," Chief Executive Officer Bob Bennett said in a statement.

The company listed assets and liabilities of more than $1 billion in its bankruptcy petition, which it filed in the U.S. Bankruptcy Court in the Eastern District of Virginia. It has eight active mining complexes in northern and central Appalachia.

Patriot has reported 1.4 billion tons of proven and probable coal reserves.   Continued...