Court approves Patriot Coal's bankruptcy-exit plan

|By:, SA News Editor

Patriot Coal (PCXCQ) says the U.S. Bankruptcy Court in St. Louis approved its restructuring plan, allowing it to complete a $250M rights offering and close up to $576M in bankruptcy-exit financing in connection with its emergence from Chapter 11, planned for tomorrow.

The plan also contains two settlements with Arch Coal (ACI) and Peabody Energy (BTU), which spun off the mining units that came to comprise Patriot the deals resolve a long-running battle over who is responsible for the liabilities Patriot took on as a result of the spinoffs.