Patriot Coal Corporation, a producer and marketer of coal products in the eastern United States has announced that a Bankruptcy Court in New York has granted the company a $802 million Debtor-in-Possession (DIP) financing and granted Patriot interim authorization to access immediately $677 million of the financing. The DIP financing and cash from the Company's ongoing operations will provide Patriot with financial flexibility to operate, including funding post-petition payments to suppliers and meeting other customary business obligations, during the reorganization process.
As SteelOrbis previously reported, Patriot Coal and substantially all 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 on July 9, 2012.