The miner, now based in Charleston, West Virginia following a recent headquarters move from St. Louis, confirmed the filing May 12. The case has been initiated with the United States Bankruptcy Court for the Eastern District of Virginia in Richmond.
Patriot officials also said that it is in “active negotiations” to sell its operating assets, though it has so far not provided more details. At the same time, it is also in ongoing discussions with its key stakeholders to evaluate what it called a “range of strategic alternatives” to maximize the assets’ value.
“The company intends to complete its review of strategic alternatives and present a value-maximizing restructuring plan to the court as quickly as possible,” the company said, adding that it also expects to continue customer shipments and its mining operations during the restructuring process.
Patriot has already received a $100 million commitment for debtor in possession (DIP) financing. The funding is being steered by a consortium of the producer’s secured debt holders and is intended to continue its operations.
“In light of the challenging market conditions, and after a comprehensive review of our alternatives, the board and management team have determined that this process represents the best path forward for Patriot and its stakeholders,” Patriot President and CEO Bob Bennett said.
“Patriot is dedicated to operational and environmental excellence and, as always, we remain committed to operating safely and serving our customers throughout this restructuring process.”
Patriot’s first bankruptcy case was initially filed in New York state in July 2012; it was handled in U.S. Bankruptcy Court for the Eastern District of Missouri. The producer reported assets of $3.57 billion and debt of $3.07 billion at the time, and it subsequently emerged from its restructuring in December 2013.
The miner currently has eight active mining operations in Northern and Central Appalachia and controls approximately 1.4 billion tons of proven and probable coal reserves. It received those assets in its spin-off from Peabody Energy in 2007 as well as a takeover of Magnum Coal the following year.
Court filings and other details surrounding the newest Chapter 11 filing can be found here.