Patriot Coal Emerges As Well-Capitalized Private Company With Competitive Cost
ST. LOUIS, Dec. 18, 2013
ST. LOUIS, Dec. 18, 2013 /PRNewswire/ --Patriot Coal Corporation (OTC: PCXCQ)
today announced its emergence from Chapter 11 as a reorganized company. The
Company exits the 18-month restructuring process with a strong balance sheet,
competitive cost structure, and streamlined operating profile focused on
market opportunities that create value.
"Today marks an exciting new beginning for our company and for our employees,"
said Patriot President and Chief Executive Officer Bennett K. Hatfield. "We
have accomplished the objectives of our reorganization and emerged in a much
stronger position to compete in the global energy and steel markets.
Importantly, we have also preserved nearly 4,000 jobs, signed new five-year
labor agreements with the UMWA, and secured significant funding for retiree
Patriot emerges from Chapter 11 reorganization with a:
oStrong balance sheet. The Company has lower debt levels and higher
available liquidity, with dramatically reduced legacy liabilities related
to retiree healthcare and other post-employment benefits.
oCompetitive cost structure. Patriot has significantly reduced its
operating costs, achieving more than $200 million in estimated annual cash
oIndustry-leading assets and reserves. The Company has 1.8 billion tons of
coal reserves, state-of-the-art mine complexes in three U.S. coal basins,
and broad transportation optionality.
oSolid customer base. Patriot has long-standing relationships with
prominent U.S. and international utility customers, steel producers, and
energy trading companies.
"Having streamlined our operations through the reorganization process, Patriot
is poised to respond quickly to changes in the markets. Utilizing our
existing mine complexes and the Company's large coal reserve base, we can add
incremental production at competitive costs with modest capital requirements,"
continued Hatfield. "In short, with the support of our dedicated employees
and new investors, Patriot Coal has a bright future."
Patriot completed the final steps in its Chapter 11 restructuring on December
18 by successfully closing $545 million in exit financing, with portions of
the exit financing led by Barclays Bank PLC and Deutsche Bank Securities
Inc.,and completing its rights offerings, receiving $250 million of junior
capital from Knighthead Capital Management, LLCand other participating
The Company has filed notice of the effectiveness of the Plan of
Reorganization with the U.S. Bankruptcy Court for the Eastern District of
Missouri. Upon the effectiveness of the Plan, all previously issued and
outstanding shares of Patriot common stock were cancelled, as were all other
previously issued and outstanding equity interests and bonds. Patriot issued
shares of a new class of common stock to unsecured creditors as provided in
the Plan. Additionally, the Company issued notes and warrants pursuant to the
rights offerings. Patriot expects to make initial distributions to unsecured
claim holders in the first quarter of 2014.
As a result of the effectiveness of the Plan, Patriot is a private company and
is no longer subject to the reporting requirements of the U.S. Securities and
Exchange Commission. However, Patriot plans to release certain financial
results and other information on at least a quarterly basis.
About Patriot Coal
Patriot Coal Corporation is a producer and marketer of coal in the eastern
United States, with 10 active mining complexes in Appalachia and the Illinois
Basin. Patriot ships to domestic and international electricity generators,
industrial users and metallurgical coal customers, and controls approximately
1.8 billion tons of proven and probable coal reserves.
Certain statements in this press release are forward-looking. These
statements involve certain risks and uncertainties that may be beyond the
Company's control and may cause actual future results to differ materially
from current expectations. Factors that could affect the Company's results
include, but are not limited to factors detailed from time to time in the
Company's reports and other information posted on its website or included in a
press release. The Company undertakes no obligation to update or revise
forward-looking statements to reflect events or circumstances that arise after
the date of this press release or to reflect the occurrence of unanticipated
SOURCE Patriot Coal Corporation
Contact: Janine Orf, (314) 275-3680, firstname.lastname@example.org
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