On July 9, 2012, Patriot Coal Corporation and substantially all of its wholly owned subsidiaries filed voluntary petitions for reorganization under Chapter 11 of the Bankruptcy Code. Patriot is using the Chapter 11 reorganization process to make the changes necessary to survive and emerge as a long-term industry participant.
Since our filing, we have made significant progress in reorganizing our company. Specifically, we have:
- Obtained an $802 million debtor-in-possession credit facility;
- Achieved a settlement with the non-union retiree committee regarding the modification and termination of certain non-union retiree benefits;
- Commenced and prosecuted multiple adversary proceedings related to coal sale contracts;
- Negotiated and entered into coal supply agreement stipulations;
- Responded to various automatic stay issues, including regarding significant environmental obligations;
- Reached a consensual agreement with the United Mine Workers of America (UMWA) and executed new collective bargaining agreements;
- Reached an agreement with the UMWA to transition healthcare benefits for current UMWA retirees to a Voluntary Employee Beneficiary Association (VEBA) trust, with funding of more than $400 million into the VEBA;
- Entered into settlement agreements with Peabody Energy Corporation and Arch Coal, Inc.;
- Secured Knighthead Capital Management, LLC to financially sponsor Patriot’s exit from bankruptcy;
- Filed an amended Disclosure Statement and Plan of Reorganization; and
- Entered into an agreement with leading financial institutions Barclays and Deutsche Bank to arrange new exit financing and post-emergence credit facilities of $576 million.
We are targeting emergence from the Chapter 11 reorganization process in mid to late December.
Additional information including press releases, letters and Frequently Asked Questions for employees, retirees, customers, suppliers, and investors can be found on this site. Court documents and other information related to the reorganization proceedings are available at www.PatriotCaseInfo.com.