ST. LOUIS — In a time when coal use is at its lowest since 1988, the Patriot Coal Corp. of St. Louis has filed a Chapter 11 petition for bankruptcy protection, Bloomberg reports.
Patriot, a spinoff Peabody Energy (also based in St. Louis), lost more than $7 billion in value since its peak in 2008. From the start of this year through July 6, the company’s stock declined 76 percent. Now, the company has filed for bankruptcy protection and lined up debtor-in-possession financing through Citigroup, Inc.
As Bloomberg Reports:
Patriot is the biggest casualty so far of the slump in the U.S. coal industry, which has seen tens of millions of tons of production cutbacks this year. Coal miners are struggling because of a combination of a warm winter, utilities switching some generating capacity to cheaper natural gas and regulatory moves to curb emissions from coal-burning power plants.
U.S. coal use in the first quarter was the lowest for that period since 1988, according to the Energy Information Administration.