Patriot Coal Scores Interim Access To $802M DIP Loan

Law360, New York (July 10, 2012, 9:16 PM EDT) -- A New York bankruptcy judge on Thursday “reluctantly” let Patriot Coal Corp. tap into $677 million of an $802 million loan early in its bankruptcy, taking issue with a $302 million chunk he said the debtor and its lenders failed to show was necessary.

After a nearly 2 1/2-hour-long first-day hearing that nearly saw the 99-affiliate-strong debtors' request for interim approval of the debtor-in-possession financing package rejected altogether, U.S. Bankruptcy Judge Allan L. Gropper approved the request for access to the money, which is meant to...
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