A U.S. Bankruptcy Court judge in St. Louis approved Patriot Coal Corp.’s restructuring plan, clearing the way for the company to emerge from Chapter 11 bankruptcy. Company officials said Patriot plans to close today on up to $576 million in bankruptcy-exit financing through Barclays and Deutsche Bank as well as $250 million through a rights offering backstopped by Knighthead Capital Management LLC.
“This marks the final step in Patriot’s financial restructuring,” Patriot president and CEO Bennett Hatfield said in a statement. “We look forward to a new beginning as a well-capitalized company providing a competitive product to the electric utility and steel industries.”
St. Louis-based Patriot filed for bankruptcy in July 2012 and listed more than $1 billion in both assets and liabilities. The company reported a net loss of $730.6 million for all of 2012 on $1.92 billion in revenue.