Patriot Coal (OTC Pink: PATCA), which is about to be dismembered in bankruptcy, said Oct. 6 that it has issued supplemental WARN notices to employees in accordance with the terms of the agreements to sell a substantial majority of its assets to Blackhawk Mining LLC and Virginia Conservation Legacy Fund (VCLF).
The supplemental WARN notices extend the notice period from the original WARN notice issued on Aug. 3. The extension was necessary because of a delay in Patriot’s bankruptcy case, which pushed back the expected closing date of the transaction from Oct. 9 to Oct. 23.
Patriot said it continues to expect that a majority of Patriot employees at its mining operations will be offered employment if the sales are completed. Blackhawk would basically get the operating mines in southern West Virginia, while VCLF would mainly get the operating FederalNo. 2 longwall mine in northern West Virginia.
West Virginia-based 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.