Bankruptcy News

We've summarized the latest docket activity and news for publicly traded companies currently operating under U.S. Bankruptcy Court protection.

Bankruptcy/Chapter 11 / Bonds / Energy

Patriot Coal Plan Filed, Disclosure Statement Approved

Patriot Coal filed with the U.S. Bankruptcy Court a Third Amended Joint Plan of Reorganization and related Disclosure Statement. According to the Disclosure Statement, "While the Debtors believe the transactions embodied in the Plan, including the Blackhawk Transaction, will ensure maximum recoveries for their stakeholders, the Debtors have received Court approval of bidding procedures whereby the Debtors will conduct a marketing process giving a potential purchaser an opportunity to 'top' the stalking horse proposal embodied in the Plan (collectively, the 'Bidding Procedures'....The Debtors' marketing efforts to date under the Bidding Procedures have proved to be fruitful, and they are pleased to report that they have agreed to a third-party transaction in which the Virginia Conservation Legacy Fund and certain of its affiliates (collectively, 'VCLF') would acquire the assets (excluding the Debtors' receivables) not proposed to be acquired in the Blackhawk Transaction and agree to assume certain liabilities excluded from the Blackhawk Transaction (such transaction, the 'VCLF Transaction')....As of the date hereof, the Debtors believe consummating the VCLF Transaction (subject to higher or better bids pursuant to the Bidding Procedures) is in the best interests of the estates and, together with the Blackhawk Transaction, facilitates the optimal available exit from the chapter 11 cases. To the extent the VCLF Transaction or a similar sale transaction cannot be consummated, however, the assets not acquired and the liabilities not assumed by Blackhawk in connection with the Blackhawk Transaction will vest in a Liquidating Trust….The further market testing of the Plan, the Blackhawk Transaction, and the VCLF Transaction is designed to ensure maximum recoveries for the Debtors' stakeholders, and the Debtors are continuing to actively market their assets to maximize value for their stakeholders." The Court subsequently approved the Disclosure Statement.

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