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 reorganization.
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.
Patriot Coals 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 said.
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 Inc.
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 First.