Patriot Coal OK’d to solicit plan votes, reject mine workers’ contract

By Caroline Salls

Pittsburgh, Sept. 17 – Patriot Coal Corp. received court approval to resolicit votes on a modified plan of reorganization in light of changes to be made to the Blackhawk Mining, LLC transaction included in the plan, according to a Thursday filing with the U.S. Bankruptcy Court for the Eastern District of Virginia.

The company said the changes to the transaction will be made in consideration for receiving “critical financing.”

Patriot Coal said the shortened timeline proposed for vote solicitation will give it an opportunity to obtain confirmation of the plan despite its “short liquidity runway.”

Under the timeline, the record date for voting on the plan will be Aug. 18, the deadline to vote on the plan will be Oct. 2, and the combined plan confirmation and disclosure statement approval hearing will be held on Oct. 5.

In addition, Patriot Coal received court approval to reject its collective bargaining agreements with the United Mine Workers of America.

According to Thursday’s order authorizing the contract rejection, the union received proposals from of Blackhawk Mining and the Virginia Conservation Legacy Fund setting the terms of new, separate collective bargaining agreements to be sent out to union members for a ratification vote following the approval of the rejection motion.

Patriot Coal, a Richmond, Va.-based miner, producer and seller of thermal coal, filed for bankruptcy on May 12. The Chapter 11 case number is 15-32450.

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