Seeking Alpha

Patriot Coal moves toward $576M in bankruptcy-exit financing

  • Patriot Coal (PCXCQ +13%) says it has reached preliminary deals to secure $576M in bankruptcy-exit financing, the last essential component for reorganization plans and the ultimate successful emergence from Chapter 11.
  • The financing comes on the heels of two other crucial sources of funding for Patriot's reorganization plans: a $250M rights offering, which hedge fund Knighthead Capital has agreed to backstop, and a $310M settlement with Peabody Energy.
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Comments (11)
  • wigit5
    , contributor
    Comments (4218) | Send Message
    Exiting bankruptcy but entering a coal market in which the weak won't survive... how strong can you be just coming out of BK?
    31 Oct 2013, 02:25 PM Reply Like
  • samdehne
    , contributor
    Comments (171) | Send Message
    Don't Steal the Stock:
    If these ("rescue") banks are honorable they will
    demand that Patriot stock NOT be canceled.
    Heck, they might even own a few (million) shares
    And surely they don't want to be tangled up in a
    bunch of nasty lawsuits.
    All just to save a few dollars worth of .10 cent shares.
    Let's show some common sense.. and some Honor!


    "The (Patriot hqtrs' outlandish scheme) restructuring plan proposes to cancel Patriot's current shares, and equity holders aren't expected to receive any payment."
    Surely the banks who have received massive handouts from the American govt would not be so hypocritical and diabolical as to go along with Patriot hqtrs' cowardly scheme to steal stock away from loyal American stockholders. Would they?
    31 Oct 2013, 02:43 PM Reply Like
  • wigit5
    , contributor
    Comments (4218) | Send Message
    You aren't a holder still are you?
    31 Oct 2013, 02:46 PM Reply Like
  • samdehne
    , contributor
    Comments (171) | Send Message
    Yes. I lost so much thanks to hqtrs' (apparent) lies
    that there is little reason to get out now.
    In an honest court the lawsuits will get my/our
    money back.. with triple.. quadruple damages..
    because they were so blatantly egregious in their
    That is why they are being extremely stupid if
    they cancel the puny amount of stock that's out
    there.. selling for peanuts.
    31 Oct 2013, 04:29 PM Reply Like
  • mkiefer009
    , contributor
    Comment (1) | Send Message
    i am, should i sell?
    31 Oct 2013, 04:31 PM Reply Like
  • wigit5
    , contributor
    Comments (4218) | Send Message
    It depends on your situation but the answer is almost certainly yes... the stock currently out there will be worth nothing (most likely) when PCX emerges from bankruptcy.


    A company that is going bankrupt should almost never be held onto or believed. Everything changes once you are at the mercy of the courts...
    31 Oct 2013, 04:49 PM Reply Like
  • samdehne
    , contributor
    Comments (171) | Send Message
    Amazingly, if back in April I had to bet on:
    1. Boston winning world series, or
    2. Patriot Coal not manipulating our stock.
    I would have taken #2.
    31 Oct 2013, 06:30 PM Reply Like
  • wigit5
    , contributor
    Comments (4218) | Send Message
    Why though why would you bet on a bankrupt company honoring their shares?
    1 Nov 2013, 09:41 AM Reply Like
  • samdehne
    , contributor
    Comments (171) | Send Message
    I remember 1 (or maybe 2) company that did the honorable American thing and allowed shareholders to keep the stock
    intact. I know it is very rare and strange.
    But no more rare and strange as Boston going from
    dead last to world series winner in 1 year.
    Thus the bet I would have made.. that the court would make
    Patriot do the "patriotic" thing. And NOT steal our stock.
    2 Nov 2013, 02:54 PM Reply Like
  • wigit5
    , contributor
    Comments (4218) | Send Message
    well hope you learned your lesson on BK companies... if you invest or leave money in a company that is going bankrupt know that "patriotism, honor, etc" is worthless. The company will either do everything to survive, or completely belly up and auction of assets via the courts.


    Just another note you note the "american" thing to do... America was founded on the raping and pillaging of other people ask the Natives... So keeping that in mind the courts probably are doing the "American" thing.
    2 Nov 2013, 03:34 PM Reply Like
  • Mongo Lobo
    , contributor
    Comments (15) | Send Message
    Does anyone know if Rick Whiting sold all of his shares?
    1 Nov 2013, 09:40 AM Reply Like
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