Martha SparksSociety Editor
August 8, 2012
CHARLESTON (AP) — A bankruptcy judge in New York has approved an $802 million financing package for Patriot Coal Corp. to continue operations as it restructures.
Other orders issued last week by U.S. Bankruptcy Judge Shelley C. Chapman allow St. Louis-based Patriot to continue paying wages and providing benefits to employees, and to continue using existing customer programs.
Patriot said Monday in a news release that its mining operations and coal shipments are continuing.
Patriot filed for Chapter 11 bankruptcy protection July 9 as it deals with reduced demand for coal and rising prices.
Chairman and CEO Irl F. Englehardt says the company is continuing to identify changes needed to ensure its viability.
Patriot has 12 mining complexes in Appalachia and the Illinois Basin.