Hedge Funds Lose Bid To Appoint Trustee Over Patriot Coal

Law360, Chicago (May 13, 2013, 3:56 PM EDT) -- A Missouri bankruptcy judge on Friday rejected an effort by two hedge funds to install a trustee to oversee Patriot Coal Corp.'s Chapter 11 case, spurning the notion that some of Patriot’s affiliates can reorganize without getting dragged into a messy fight with the miners’ union.

Aurelius Capital Management LP and Knighthead Capital Management LLC, both bondholders of St. Louis-based Patriot, failed to show cause for such a drastic remedy and didn’t demonstrate that it would benefit the company’s creditors, according to an order signed by...
To view the full article, register now.

UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.