Patriot Coal Corporation was a coal-mining company based in St. Louis, Missouri in the United States. The company is a spin-off of most of the Eastern U.S. operations of Peabody Energy.
Patriot is the second largest coal miner east of the Mississippi River. The company's operations are made up of 16 mining complexes. Thirteen of these complexes are located in West Virginia and three are located in Kentucky. In 2007, Patriot sold 22.1 million tons of coal. The company controls 1.9 billion tons of proven and probable coal reserves. Patriot is the largest producer of thermal coal in the Eastern United States. It is also a leading producer of metallurgical coal. Approximately 80% of its coal is sold to domestic utilities and 20% is sold to domestic and international steel producers.
Patriot Coal's stock started trading on the New York Stock Exchange under the symbol PCX on November 1, 2007.
On July 23, 2008, Patriot acquired Magnum Coal Company. At the time, Magnum was one of the largest coal producers in Appalachia, with 11 mines and 7 processing plants. Magnum had over 600 million tons of proven or probable coal reserves.[2]
On June 1 and 14, 2012, solely for the purpose of establishing venue in the Southern District of New York, Patriot incorporated two subsidiaries in New York, according to counsel for the United Mine Workers.[3][4] On July 9, 2012, Patriot Coal Corporation and all of but two of its wholly owned subsidiaries filed voluntary petitions for reorganization under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the Southern District of New York. None of its joint ventures are party to the bankruptcy proceeding, however.[5] Patriot management advised its shareholders that it intends to use the reorganization process to address its financial challenges and make the company stronger and more competitive. The stock listed on the NYSE (New York Stock Exchange) under the symbol PCX dropped 72.1% to a record low on July 9, 2012.[6]
Also on July 9, 2012, the company issued a letter to all retired workers that their medical programs are still in place and payments will be made as usual.[7] The company has, however, made it clear that it intends to seek to reduce or eliminate its benefit obligations through the bankruptcy process, which it estimates to have a total present value of $1.3 Billion.[8] The United Mine Workers of America, which represents Patriot's classified workers and retirees, has indicated that it will fight to preserve those promised benefits.[9]
On July 10, 2012, the company received interim bankruptcy court approval of a debtor-in-possession loan facility, giving Patriot access to $677 million in financing.[10]
Having restructured, the company exited Chapter 11 on December 18, 2013, as a privately owned company.[11]
In Patriot Coal's Brody Mine No. 1 in West Virginia two of its workers died in a ground failure. The owners were in the process of disputing numerous safety violations at the mine which the federal Mine Safety and Health Administration had categorized as a pattern violator.[12]
in February 2014, over 100,000 gallons of coal slurry spilled from a Patriot Coal facility into Fields Creek, a tributary of the Kanawha River.[13]
On May 12, 2015, Patriot Coal Corporation and its wholly owned subsidiaries filed voluntary petitions for restructuring under Chapter 11.[14]
In October 2015, Lexington, KY-based Blackhawk Mining, LLC, purchased most of the assets of Patriot Coal out of bankruptcy. The value of the transaction was approximately $1 billion.
The company has announced it will no longer provide health coverage to its retirees after 31 December 2016.[15]
Operations
On November 15, 2012, the company signed an agreement with the Sierra Club to end the practice of mountaintop removal, a destructive forms of mining.[16]
References
- ^ "Peabody Energy Completes Spin-Off". 2007-11-01.[dead link]
- ^ Archived copy Archived 2012-03-04 at the Wayback Machine
- ^ "Court document" (PDF). patriotcaseinformation.com. Retrieved 24 September 2023.
- ^ "Court document" (PDF). patriotcaseinformation.com. Retrieved 24 September 2023.
- ^ "PCX-6.30.2012-10Q". www.sec.gov. Retrieved 2017-09-19.
- ^ "Patriot Coal Corporation Case Administration Website". www.patriotcaseinformation.com. Retrieved 2017-09-19.
- ^ "Archived copy" (PDF). Archived from the original (PDF) on 2012-10-22. Retrieved 2012-07-10.
{{cite web}}: CS1 maint: archived copy as title (link) - ^ "Court document" (PDF). patriotcaseinformation.com. Retrieved 24 September 2023.
- ^ Patriot Herp courierpress.com/ August 28, 2012 [dead link]
- ^ "Patriot Coal nets interim court OK for DIP facility - LeveragedLoan.com". LeveragedLoan.com. 2012-07-11. Retrieved 2017-09-19.
- ^ "Patriot Coal emerges a well-capitalised private firm after Chapter 11 recast".
- ^ "West Virginia mine was doing risky retreat mining". San Diego Tribune. Retrieved 2017-09-19.
- ^ Conlon, Kevin (12 February 2014). "Officials: Coal slurry spill blackens 6 miles of West Virginia creek". CNN.com. CNN. Retrieved 28 June 2017.
- ^ "Patriot Coal Chapter 11 Petition" (PDF). PacerMonitor. Retrieved 7 June 2016.
- ^ "Retired Coal Miners Losing Their Safety Net". New York Times. 29 November 2016. Retrieved 29 November 2016.
- ^ "One Big Step Closer to Ending Mountaintop Removal". blogs.sierraclub.org.
External links
- Historical business data for Patriot Coal:
- SEC filings