NEW YORK Patriot Coal Corp. has received court approval to reorganize its business, it said Nov. 6.
The U.S. District Court in eastern Missouri has authorized a deal with Barclays Capital Plc and Deutsche Bank to arrange exit financing and post-emergence credit facilities of $576 million.
The "actions by the court represent important milestones on Patriots path to emergence as a strong, well capitalized competitor in the coal industry," president and chief executive officer Bennett Hatfield said.
Knighthead Capital Management LLC will organize the proposed rights offerings and reorganization plan.
St. Louis-based Patriot filed for Chapter 11 bankruptcy protection in July 2012 in a U.S. Bankruptcy Court in southern New York (amm.com, July 10, 2012).