Patriot did not indicate any specific dollar figures but said the two firms, Aurelius Capital Management and Knighthead Capital Management, would backstop or provide “hundreds of millions of dollars for the debtors’ estates” if a deal came to fruition.
Officials submitted the documentation for the plan because it is seeking court permissions to pay fees to the firms, which it hopes will aid in funding its reorganization.
Patriot recently won court permission to alter its agreements with unionized workers but the company and the United Mine Workers of America are still at the negotiating table on details.
Knighthead holds $US57.4 million of Patriot’s 8.25% senior notes due 2018, or 23% of them.
Aurelius holds $77.9 million of the same notes, or 31% of them, according to court papers.
In addition, Aurelius owns $19.7 million of Patriot’s 3.25% senior notes due 2013 – about 10% of the total amount.
Patriot, a spin-off company of Peabody Energy, filed for Chapter 11 bankruptcy protection in July 2012, citing a drop in demand for its coal and staggering healthcare obligations for its retiree workers.
The case is In re: Patriot Coal Corp 12-51502 in US Bankruptcy Court for the Eastern District of Missouri (St. Louis).
