Patriot Coal Corporation announced Thursday its emergence from Chapter 11 as a reorganized company. The Company exits the 18-month restructuring process with a strong balance sheet, competitive cost structure, and streamlined operating profile focused on market opportunities that create value.
"Today marks an exciting new beginning for our company and for our employees," said Patriot President and Chief Executive Officer Bennett K. Hatfield. "We have accomplished the objectives of our reorganization and emerged in a much stronger position to compete in the global energy and steel markets. Importantly, we have also preserved nearly 4,000 jobs, signed new five-year labor agreements with the UMWA, and secured significant funding for retiree healthcare."
Patriot completed the final steps in its Chapter 11 restructuring on December 18 by successfully closing $545 million in exit financing, with portions of the exit financing led by Barclays Bank PLC and Deutsche Bank Securities Inc., and completing its rights offerings, receiving $250 million of junior capital from Knighthead Capital Management, LLC and other participating unsecured creditors.
The Company has filed notice of the effectiveness of the Plan of Reorganization with the US Bankruptcy Court for the Eastern District of Missouri. Upon the effectiveness of the Plan, all previously issued and outstanding shares of Patriot common stock were cancelled, as were all other previously issued and outstanding equity interests and bonds. Patriot issued shares of a new class of common stock to unsecured creditors as provided in the Plan. Additionally, the Company issued notes and warrants pursuant to the rights offerings. Patriot expects to make initial distributions to unsecured claim holders in the first quarter of 2014.
