Patriot Coal (OTC Pink: PATCA), a producer and marketer of coal in the eastern United States, on Sept. 22 announced that, following a competitive auction, it is proceeding with a transaction to sell a substantial majority of its operating assets to Blackhawk Mining LLC.
Patriot said it will seek approval from the U.S. Bankruptcy Court for the eastern District of Virginia for the transaction at a court hearing scheduled for Oct. 5.
Bob Bennett, President and Chief Executive Officer of Patriot, said: “The auction process was robust and competitive. We are pleased with the results of the auction and believe that the proposed transaction with Blackhawk is in the best interest of Patriot, and its employees and stakeholders. We look forward to obtaining confirmation of our plan and consummating this transaction, and are gratified to have a solution that preserves jobs in West Virginia, helps ensure environmental obligations are handled in a responsible manner and maximizes value for creditors. As we work to complete the sale process, we remain committed to operating safely and serving our customers.”
The transaction with Blackhawk is subject to court approval and confirmation of Patriot’s proposed plan of reorganization, as well as certain other customary conditions. Coronado Coal LLC, which also submitted a qualified bid and participated in the auction, was designated the backup bidder should the Blackhawk transaction not be approved.
Patriot Coal is a producer and marketer of coal in the eastern United States, with eight active mining complexes in Northern and Central Appalachia. Patriot mines, processes and sells bituminous metallurgical, thermal, and stoker coal to domestic and international electricity generators, metallurgical coal customers and industrial users, and controls approximately 1.4 billion tons of proven and probable coal reserves.
Blackhawk Mining is a privately-owned coal producer operating in Central Appalachia and the Illinois Basin, with five active mining complexes. Blackhawk mines, processes and sells bituminous thermal, PCI, stoker and industrial grade metallurgical coal to domestic and international electric utilities, steel producers and industrial customers.