Patriot Coal files for bankruptcy reorganization
Posted: July 10, 2012 Filed under: Uncategorized | Tags: Coal, economy, Markets, Patriot, regulations
Weak economy and environmental regulations have driven its costs higher: Company
Patriot Coal Corp. filed for Chapter 11 bankruptcy protection on Monday as it deals with reduced demand for coal and rising costs, an Associated Press story said.
“Patriot said it will continue shipping and mining operations, and it has received a commitment for $802 million in debt financing from Citigroup Global Markets, Barclays Bank, and Merrill Lynch. The St. Louis company is filing for reorganization in the Bankruptcy Court of the Southern District of New York,” according to the AP.
“Coal-mining companies have struggled recently because U.S. demand and prices for coal are down.Natural gas prices have fallen sharply because of a production boom and weak demand for it during the mild winter. U.S. utilities and other companies have been switching to cheap natural gas from coal to generate electricity.”
Shares of Patriot Coal lost $1.58, or 72.1 percent, to close at 61 cents on Monday.