NEW YORK Patriot Coal
Corp. saw its net loss surge more than fivefold in 2012 due to
declining revenue and costs associated with its bankruptcy
The St. Louis-based
metallurgical coal producer posted a net loss of $730.6 million
for the year ended Dec. 31, compared with a prior-year net loss
of $139.1 million, on revenue that fell nearly 21 percent to
$1.88 billion from $2.38 billion.
fourth-quarter net loss of slightly more than $85 million was
nearly four times the $23.2-million loss recorded in the same
2011 quarter on revenue that dropped 27.5 percent to $437.8
million from $603.9 million.
The company filed for Chapter 11
bankruptcy protection in U.S. Bankruptcy Court in southern New
York on July 9 (
amm.com, July 10).
Its business has been hit by a
reduction in thermal coal demand due to competition from
low-priced natural gas, challenging environmental regulations
that have affected the cost of producing and using coal, and
weak international and domestic economies, the company
Patriot Coal was granted
debtor-in-possession (DIP) financing of $802 million on July
11. The bankruptcy court has approved the financing from a
consortium led by Citigroup Global Markets Inc., Barclays
Capital Plc and Merrill Lynch, Pierce, Fenner & Smith
The banks have given interim
authorization for Patriot Coal to access $677 million of the
DIP financing to allow it to continue operating.
A version of this article was first
published by AMM sister publication Steel