The decision comes after a competitive auction process was held as part of Patriot’s proposed plan of reorganisation after being placed in Chapter 11.
Patriot president and CEO Bob Bennett said the auction process had been robust and competitive.
“We are pleased to have received Court approval for the transactions with Blackhawk and VCLF, which we believe represent the best possible outcome for Patriot and its stakeholders,” he said.
“These transactions preserve jobs, help ensure environmental obligations are handled in a responsible manner and maximize value for creditors.
“I want to thank our employees for their hard work and dedication throughout the sale process. I also want to thank our restructuring professionals and parties in interest, who worked in a dedicated and cooperative manner to help us achieve this successful outcome.
“We look forward to completing the transactions in the coming weeks and concluding the chapter 11 process.”
The transactions are expected to close within a few weeks, and are subject to certain other customary closing conditions.
Until the transactions close, Patriot's mining operations will continue to operate independently of Blackhawk and VCLF. Patriot continues to expect that a majority of Patriot employees at its mining operations will be offered employment once the transactions are completed.