Patriot Coal Chapter 11 plan confirmation hearing canceled

By Mark Reccek

Bethlehem, Pa., Sept. 14 – Patriot Coal Corp.’s Chapter 11 plan confirmation hearing has been canceled, according to a Monday filing with the U.S. Bankruptcy Court for the Eastern District of Virginia.

The company has requested that the hearing be rescheduled to Oct. 5.

As previously reported, Patriot Coal filed an amended plan in connection with its announcement that it reached an agreement under which Virginia Conservation Legacy Fund, Inc. (VCLF) affiliate ERP Compliant Fuels, LLC will acquire substantially all of the Patriot Coal assets and liabilities not included in a previously announced sale agreement with Blackhawk Mining, LLC.

The terms of that plan included the following:

• Priority claims and secured tax claims will be paid in full in cash;

• Holders of other secured claims will either be paid in full in cash or receive the collateral securing the claim;

• Holders of pre-bankruptcy ABL facility claims will be repaid in cash or, to the extent not repaid, converted into loans drawn under a new combined company facility on a dollar-for-dollar basis;

• Holders of pre-bankruptcy letter-of-credit facility claims will receive a share of combined company first-lien term loans for drawn amounts and letters of credit under a combined company facility for undrawn amounts;

• Holders of pre-bankruptcy term loan facility claims will receive a share of combined company second-lien PIK notes and rights to participate in a first-lien rights offering;

• Holders of pre-bankruptcy notes claims will receive a share of combined company second-lien PIK notes and, to the extent the holder is eligible, new class B units and rights to participate in a second-lien rights offering;

• If the VCLF transaction is completed, holders of general unsecured claims will receive an equity grant. If the transaction is not completed, those creditors will receive liquidating trust units; and

• Holders of equity interests, intercompany claims and intercompany interests will receive no distribution.

Patriot Coal, a Richmond, Va.-based miner, producer and seller of thermal coal, filed for bankruptcy on May 12. The Chapter 11 case number is 15-32450.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.