St. Louis-based Patriot Coal (OTC: PCXCQ) announced Sept. 11 that its Debtor-in-Possession (DIP) financing has been extended to Dec. 31, 2013.
DIP financing is the money that a company borrows after entering bankruptcy protection and it has priority over pre-bankruptcy debt. Patriot, a major coal producer in western Kentucky and in West Virginia, has been in Chapter 11 bankruptcy protection since July 2012. Without DIP authority to borrow money, a company would have to shut operations.
Separately, Patriot Coal has filed a notice with the U.S. Bankruptcy Court for the Eastern District of Missouri setting forth the relevant dates for approval of its forthcoming Disclosure Statement. The Disclosure Statement, which will detail its restructuring plans, is expected to be filed on or before Oct. 2, and the approval hearing is currently scheduled for Nov. 6.
Patriot Coal is a producer and marketer of coal in the eastern United States, with 11 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.