Patriot Coal Again Files For Bankruptcy Protection

(RTTNews) - Patriot Coal Corp. (PCXCQ.PK), a producer and marketer of coal in the eastern United States, announced that the company and its wholly-owned subsidiaries filed for Chapter 11 bankruptcy protection, just 18 months after emerging from its previous bankruptcy protection.

The Company, which filed voluntary petitions in the United States Bankruptcy Court for the Eastern District of Virginia, in Richmond, VA, said it intends to complete its review of strategic alternatives and present a value-maximizing restructuring plan to the Court as quickly as possible.

The company noted that it is engaged in active negotiations for the sale of substantially all of the Company's operating assets to a strategic partner. The Company is also engaged in ongoing discussions with key stakeholders as it evaluates a range of strategic alternatives to maximize the value of its assets.

Patriot expects its customer shipments and mining operations to continue in the ordinary course during the restructuring process. The company has received a commitment for $100 million in "debtor in possession" ("DIP") financing led by a consortium of the Company's secured debt holders to support its continued operations.

Upon approval by the Court, the DIP financing, combined with cash generated from ongoing operations will provide sufficient liquidity to support the business during the restructuring process.