In Commodity News 23/04/2015
Patriot Coal Corp., the miner that emerged from bankruptcy two years ago, is exploring options to sell itself as prices for its commodity stagnate in the worst downturn in decades, according to a person with direct knowledge of the matter.
The coal company hired investment bank Centerview Partners LLC and restructuring advisory firm Alvarez & Marsal Inc. to help it examine reorganization options that include selling some or all of its assets, said the person, who asked not to be named because the information isn’t public. Patriot is in confidential discussions with its creditors to facilitate a deal, the person said.
Dana Marinaro, a spokeswoman for Patriot, declined to comment. Rebecca Baker, a spokeswoman for Alvarez & Marsal, didn’t respond to telephone and e-mail messages left for comment. A Centerview spokeswoman said she couldn’t immediately provide comment.
The Wall Street Journal reported last week that the company hired the two advisory firms.
Coal companies seeking ways to cut their debt loads as prices of the commodity fall to the lowest in six years. Walter Energy Inc. skipped bond payments due to creditors last week as senior lenders sought to engage it in talks to restructure its $3.1 billion of borrowings. Alpha Natural Resources Inc. bought back $593 million face value of unsecured bonds by issuing new second-lien notes and Murray Energy Corp. sold debt to finance its acquisition of a stake in rival Foresight Energy LP.
Patriot, based in Scott Depot, West Virginia, emerged from bankruptcy on Dec. 18, 2013, slashing its debt to $545 million from $3.07 billion.
The miner sold some assets in western Kentucky to Alliance Resource Partners LP in December as part of its “review of strategic options,” according to a Dec. 31 company statement. It closed the Highland Mine and Dodge Hill Mining Complex.
Patriot announced the resignation of Chief Executive Officer Bennett K. Hatfield earlier this month and promoted Robert W. Bennett to the position.
