Patriot Coal Corp. is calling on its lenders to relax its $802
million credit agreement so it can avoid a default as it
attempts to exit Chapter 11 bankruptcy.
On Aug. 7, Patriot
asked the U.S. Bankruptcy Court in Missouri for an amendment to
its agreement with debtor-in-possession lenders Citicorp North
America Inc., Barclays Bank Plc and Bank of America Corp. to
relax financial covenants to ensure its lenders do not stop
funding the remainder of the companys bankruptcy
A hearing on the
amendment is scheduled for Aug. 20.
The St. Louis-based
company has had to contend with a decline in demand and lower
prices for metallurgical coal, which have lowered its earnings
Patriot Coal filed for
Chapter 11 bankruptcy protection in July 2012 in U.S.
Bankruptcy Court in New York (
amm.com, July 10, 2012).
However, the case was
moved to Missouri after a federal bankruptcy court judge in New
York received hundreds of letters from coal miners and their
families who wanted the case heard in St. Louis so workers and
retirees could attend the hearings (
amm.com, Nov. 29).
Patriot Coal president
and chief executive officer Bennett Hatfield is hoping to get
the company out of bankruptcy by the end of the year.
A version of this article was first published in AMM sister
publication Steel First.