Patriot Coal, once a major U.S. coal producer, announced Oct. 28 that its Plan of Reorganization became effective that day, marking the successful completion of the chapter 11 restructuring process.
In conjunction with the plan becoming effective, Patriot has completed the transactions to sell most of its operating assets in West Virginia to Blackhawk Mining LLC, and to sell substantially all of its remaining assets and liabilities to an affiliate of Virginia Conservation Legacy Fund Inc. (VCLF). The VCLF deal includes the Federal No. 2 mine in northern West Virginia, plus various properties needing post-mining reclamation.
Bob Bennett, President and Chief Executive Officer of Patriot, said: “We are pleased to have reached the successful conclusion of this process, which we believe represents the best possible outcome for Patriot’s employees and stakeholders. On behalf of Patriot Coal, I want to thank all of our employees for their hard work and dedication. I also thank our professionals and the many outside parties who worked so tirelessly to help achieve this result. I am confident that Blackhawk and VCLF will be responsible stewards of our mining operations going forward, and I wish them and their employees the best of luck.”
Centerview Partners LLC is serving as financial advisor and investment banker for Patriot, and Kirkland & Ellis LLP is serving as legal advisor to Patriot. Alvarez & Marsal is serving as Chief Restructuring Officer for Patriot.
Notable is that while the main assets are gone, there are still elements of Patriot Coal, including existing and future cash to be distributed to claims holders, being administered out of the U.S. Bankruptcy Court for the Eastern District of Virginia.