- Proposal altered in case Blackhawk outbid for miner's assets
- Rival cash bid would provide creditors with potential payout
Patriot Coal Corp. filed an amended restructuring plan that adds new details to explain what would happen should another bidder step forward to acquire assets that Blackhawk Mining LLC has already offered to buy.
The bankrupt miner said in court documents filed late Friday that it’s still in negotiations with a potential new bidder to compete with Blackhawk. The potential new deal would be paid in cash, providing creditors with a payout, as opposed to Blackhawk’s offer, which would shift liabilities to the combined new company.
The deadline for qualified competing bids was set for 5 p.m. Friday. Scott Depot, West Virginia-based Patriot will hold a Sept. 21 auction if another bid is made.
Environmentally conscious investment firm Virginia Conservation Legacy Fund has offered to acquire the assets not included in the Blackhawk deal. Patriot is scheduled to seek court approval of its restructuring plan at an Oct. 5 hearing.
The case is In re Patriot Coal Corp., 15-bk-32450, U.S. Bankruptcy Court, Eastern District of Virginia (Richmond).