WASHINGTON (dpa-AFX) - Patriot Coal Corp. (PCX) Monday said it has filed voluntary petitions for reorganization under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the Southern District of New York.
The St. Louis, Missouri based company had been struggling amid lower demand for coal and said it intends to undertake a comprehensive financial restructuring. The company's mining operations and coal shipments will continue in the ordinary course.
Patriot has obtained a commitment for $802 million in debtor-in-possession financing from Citigroup Global Markets Inc., Barclays Bank plc, and Merrill Lynch, Pierce, Fenner & Smith Inc. as joint lead arrangers, in conjunction with the reorganization.
The new financing and cash generated from Patriot's ongoing operations will be used to support the business during the reorganization process upon approval by the Bankruptcy court.
Patriot shares closed Monday at $0.61, down $1.58, or 72.1%. In after hours, the stock further lost $0.2459, or 40.25% and trades at $0.3701.
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