On Tuesday Patriot confirmed it intended to emerge from Chapter 11 reorganisation on December 18 following the US Bankruptcy Court for the Eastern District of Missouri confirming the plan.
Patriot will close on its exit financing and complete its rights offerings the same day.
“This marks the final step in Patriot's financial restructuring,” president and chief executive officer Bennett Hatfield said.
"We look forward to a new beginning as a well-capitalised company providing a competitive product to the electric utility and steel industries.”
Patriot first filed for bankruptcy on July 8, 2012, listing assets of about $US3.57 billion ($A4 billion) and debt of $3.07 billion.
It cited a reduction in demand for coal as well as about $1.6 billion in lifetime retiree healthcare obligations plus other liabilities for its move to file.
The producer was a spin-off company of Peabody Energy, with the latter’s officials stressing that Patriot was a viable company when it was spun off and its subsequent 2008 takeover of another company, Arch spin-off Magnum Coal, played a role in its problems.
The case was formally known as In re Patriot Coal Corp, 12-bk-51502, US Bankruptcy Court, Eastern District of Missouri (St. Louis).
In October, Patriot confirmed it had secured a financial sponsor and reached key funding settlements, a crucial step in its plan to emerge from Chapter 11.
Knighthead Capital Management agreed to financially sponsor Patriot’s emergence from bankruptcy.
In addition, after months of litigation and negotiation with Peabody Energy and Arch Coal, Patriot entered into settlements with both.
The agreements provided Patriot with a significant liquidity infusion and positioned it to get the exit financing needed to come out of its case as a strong and well-capitalised business.
Additionally, the agreements will give funding for the United Mine Workers of America-sponsored Voluntary Employee Beneficiary Association trust of more than $400 million, which is to provide healthcare cover for UMWA retirees.
“Reaching these agreements represents a pivotal juncture in Patriot’s restructuring,” Hatfield said at the time.
