Globally, the coal industry is experiencing one of the sharpest and deepest market adjustments of the last 30 years. As a result, every participant in the industry must make rapid and extraordinary changes in response to declining demand and margins.
Patriot is using the Chapter 11 reorganization process to make the necessary changes to become competitive and to emerge as a long-term industry participant. The stakes are very high. More than 4,000 jobs will be lost if we cannot successfully reorganize.
Prior to the Chapter 11 filing, there was an enormous adjustment to the thermal coal markets Patriot serves. This has been magnified by the deterioration of metallurgical coal markets since our filing. We are proud of how our employees have responded to these challenges. Our operations have been running well due to our employees’ dedication and hard work.
Management is moving aggressively to restructure Patriot’s debt, cancel unprofitable and unnecessary contracts and improve Patriot’s cost structure. We will continue to examine every aspect of our cost structure to make necessary improvements. This is a difficult and painful process. However, it is absolutely necessary if we are to become competitive and emerge as a long-term industry participant.
To learn more about the broader challenges facing the coal industry, click here.
To learn more about the challenges Patriot faces, click here.