Low Sales, High Costs Usher Patriot Coal Into Ch. 11

Law360, Los Angeles (July 9, 2012, 8:38 PM EDT) -- St. Louis-based coal producer Patriot Coal Corp. filed for Chapter 11 in New York bankruptcy court Monday, saying low-priced natural gas has reduced demand for thermal coal in the U.S. as tougher environmental regulations increased its costs.

Patriot, which runs 12 mining complexes in West Virginia and the Illinois Basin, says it has been hit hard by changes in the coal sector, pointing to $3.6 billion in total assets and $3.1 billion in total debts. Monday's news sent Patriot's stock plummeting in after-hours trading, down nearly...
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