Patriot Coal Corp. (PCX) has fielded formal pitches from
restructuring advisers in the event the company can't satisfy its
near-term financing needs, Debtwire reported.
The report, which cited three unnamed sources familiar with the
matter, said the pitches involved Centerview Partners LLC and
Blackstone Group L.P. (BX) and were organized by law firm Davis
Polk & Wardwell LLP on Patriot's behalf.
A Patriot representative wasn't immediately available for
comment.
Last week, Patriot lowered its sales volume outlook for
metallurgical coal for the rest of the year, citing the potential
default of a key customer. Two ratings firms soon after downgraded
the company's credit ratings.
Patriot's already battered shares plummeted 29% in heavy trading
to $2.39, dragging down a handful of coal producers' stocks, as
well. Arch Coal Inc. (ACI) slipped 8% to $7.10, while Alpha Natural
Resources Inc. (ANR) slid 4.3% to $11.17 and Peabody Energy Corp.
(BTU) fell 3.5% to $23.77.
Full story: www.debtwire.com
-By Dow Jones Newswires; 212-416-2356