Patriot Coal Gets Judge's Nod To Exit Bankruptcy

Law360, New York (December 17, 2013, 5:04 PM EST) -- Patriot Coal Corp. on Tuesday received the green light to exit bankruptcy, almost a year and a half after it first sought Chapter 11 protection in the face of crushing union and pension obligations and plummeting coal prices.

U.S. Bankruptcy Judge Kathy A. Surratt-States signed off on the company’s reorganization plan Tuesday morning, allowing Patriot to exit bankruptcy by Wednesday. The plan rests on a rights offering backstopped by Knighthead Capital Management LLC, which will provide a $250 million boost to fund retiree benefits.

“We look...
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