Patriot Coal In Ch. 11 Plan Talks With Hedge Funds

Law360, Chicago (June 19, 2013, 2:00 PM EDT) -- Bankrupt Patriot Coal Corp. said Tuesday that it is in talks with two hedge fund bondholders about a reorganization plan that would provide hundreds of millions of dollars in financing through a rights offering.

Aurelius Capital Management LP and Knighthead Capital Management LLC — who would backstop the rights offering — are currently negotiating potential plan terms with Patriot, according to a motion filed in Missouri bankruptcy court.

Patriot’s motion asked U.S. Bankruptcy Judge Kathy A. Surratt-States for permission to pay the two hedge funds’ fees...
To view the full article, register now.