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Patriot Coal eyes Ch. 11 exit after deals with Peabody, Knighthead

  • Patriot Coal (PCXCQ.OB) is hoping to emerge from bankruptcy protection by the end of the year after Peabody Energy (BTU) said it would provide $310M to finance the benefits of 3,100 retirees that the latter had agreed to continue covering after it spun off Patriot Coal in October 2007. Peabody had wanted to stop making the payments following Patriot's bankruptcy and a new deal it signed with the United Mine Workers of America (UMWA).
  • Peabody will also extend about $140M to Patriot in the form of letters of credit.
  • Patriot also reached a settlement with Arch Coal (ACI) in which Arch will provide $5M and the release of a $16M letter of credit posted in its name.
  • In addition, Patriot will receive $250M via a rights offering backstopped by Knighthead Capital Management. (PR)
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Comments (12)
  • 15089042
    , contributor
    Comments (9) | Send Message
     
    does this really matter?... what needs to be address for stockholders is if the existing stock will be dissolved and new stock issued. evidently from what others have written, existing stock is usually dissolved. would love to hear from the experts. i don't understand if this is the case why people are still trading and owning this stock.
    10 Oct 2013, 10:13 AM Reply Like
  • BornIn87
    , contributor
    Comments (107) | Send Message
     
    A rights offering. I guess that gives rights on the new stock after reorganization? Let me have one of those, please.
    10 Oct 2013, 10:23 AM Reply Like
  • samdehne
    , contributor
    Comments (100) | Send Message
     
    Do Not Cancel Patriot Coal Stock
    The easy way would be the
    honest way.
    Continuing with the perfectly valid
    current PCX stock is a lot easier..
    and much more honest.. than going
    through the dysfunctional
    rigamarole of issuing new
    (un"Patriotic") stock.
    And furthermore, if Patriot does it
    this "patriotic" and honorable way...
    they won't have to face those myriad
    Lawsuits lurking out there.
    10 Oct 2013, 10:24 AM Reply Like
  • BornIn87
    , contributor
    Comments (107) | Send Message
     
    Perhaps they will not cancel the stock. It's a long-shot, but I've thrown money at long-shots before. Worth a small gamble?
    10 Oct 2013, 10:28 AM Reply Like
  • samdehne
    , contributor
    Comments (100) | Send Message
     
    Don't Cancel the Stock
    Those money guys are putting $400,000,000 into PCX.
    It would be a puny drop in the bucket for them be honorable
    and maintain the currently valid PCX stock... with total
    market cap of only $14,000,000. And even the vast
    majority of that is already scarfed up.
    At least these money guys should give current stock holders
    (many of whom are Patriot coal miners) warrants.
    10 Oct 2013, 10:47 AM Reply Like
  • BornIn87
    , contributor
    Comments (107) | Send Message
     
    They're pretty clear in saying that it's going to be canceled. http://bit.ly/16Ttt5J
    10 Oct 2013, 11:13 AM Reply Like
  • samdehne
    , contributor
    Comments (100) | Send Message
     
    It reads:
    "The Plan of Reorganization must be voted on by
    certain of Patriot’s creditors and is subject to
    confirmation by the Bankruptcy Court before it is effective."
    If a lot of letters like this one ( http://bit.ly/16TvOxj ) were sent to the Court,
    maybe it will do the honest thing and not cancel the
    PCX stock.
    And there is this from Patriot hqtrs that would make them
    extremely liable in Lawsuits waiting in the wings:
    5/29/12 - "We will enhance value for our shareholders."
    8/21/13 - "Patriot remains committed to a fair outcome for our stakeholders."
    10 Oct 2013, 11:29 AM Reply Like
  • what do I know
    , contributor
    Comments (1049) | Send Message
     
    How did BTU fair in this deal!
    10 Oct 2013, 12:28 PM Reply Like
  • samdehne
    , contributor
    Comments (100) | Send Message
     
    Peabody (BTU) could buy Patriot back for
    about $17 million. And then they would have
    control of the operations.
    Brilliant idea.
    Or somebody else could buy Patriot.
    There are about $1/2 billion more assets
    than liabilities. And Patriot says business
    is getting better.
    An all-out purchase would seem like
    a no-brainer.
    10 Oct 2013, 01:32 PM Reply Like
  • 15089042
    , contributor
    Comments (9) | Send Message
     
    patriot recently shutdown two mines in wv. I already sold the stock after one of the contributors wrote an article and the stock plummeted from .60 back down to .15. i didn't know back then that they would dissolve current stock.
    10 Oct 2013, 03:04 PM Reply Like
  • jtyler5
    , contributor
    Comment (1) | Send Message
     
    I balied today at 3:50 PM at 0.23, and it dropped to 0.21 right after. Those shares will be useless - maybe on November 6ht, and surely when they emerge. Their own statements say that al common shares wil go to zero. I am thanking God all day for this "bail-out". Never going back to this one. :)

     

    John Tyler
    11 Oct 2013, 07:57 AM Reply Like
  • ohimbert
    , contributor
    Comments (14) | Send Message
     
    Per FAQ on Patriot's website:

     

    http://bit.ly/16Ttt5J

     

    "What will happen to the Patriot common stock that I own? Will I receive any compensation if the
    stock is cancelled?
    • Per the Plan of Reorganization we filed with the Bankruptcy Court on September 6, 2013,
    holders of “Interests in Patriot Coal” (equity securities) will not receive any distributions and
    such interests will be cancelled and extinguished.
    • The Plan of Reorganization must be voted on by certain of Patriot’s creditors and is subject to
    confirmation by the Bankruptcy Court before it is effective."

     

    So it's confirmed that stock will be worth zero by the end of the year.....Can't wait to buy more Patriot Coal stock when they emerge from Chp 11, yeah right! lol!
    22 Oct 2013, 09:15 PM Reply Like
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