Patriot Coal Corp. said Monday it filed for protection from its creditors under Chapter 11 of the U.S. Bankruptcy Code in a move by the St. Louis-based mining firm to keep operating while it restructures its finances, according to previously published reports.
Patriot Coal said it lined up $802 million in financing from Citigroup, Barclays and others to allow it to remain in business during proceedings in Bankruptcy Court in the Southern District of New York, according to stories currculating the Internet on Monday.
Patriot Coal said U.S. thermal coal demand has been impacted by competition from low-priced natural gas and “challenging environmental regulations.”
Shares of Patriot Coal fell 40 percent to 37 cents a share in after hours trading, on top of a 72 percent plunge during regular market transactions. The stock was briefly halted late in the trading day on Monday.
Fellow coal producer Alpha Natural dropped 7.5 percent on Monday as the biggest decliner among components of the S&P 500. Peabody Energy Corp. declined 6.2 percent.