Patriot says it will continue shipping and mining operations, and has received a commitment for $802 million debt financing from Citigroup Global Markets, Barclays Bank, and Merrill Lynch. The St. Louis company is filing for reorganization in the Bankruptcy Court of the Southern District of New York.
Coal-mining companies have struggled recently because U.S. demand and prices for coal are down, partly because of low prices for natural gas. Patriot says weak economic conditions in the U.S. and overseas have also hurt its business. It also says environmental regulations have driven its costs higher.
By The Associated Press(equals)The Dow Jones industrial average closed down 36.18 points at 12,736.29. The Standard & Poor's 500 index fell 2.22 points to 1,352.46 and the Nasdaq composite index fell 5.56 points to 2,931.77. Benchmark U.S. crude rose $1.54 to end the day at $85.99 per barrel in New York. Brent crude, which comes from the North Sea and sets the price for oil imported into the U.S., added $2.13 to finish at $100.32 per barrel in London. In other futures trading, heating oil rose 4 cents to end at $2.75 per gallon and wholesale gasoline rose by 4 cents to finish at $2.76 per gallon. Natural gas rose 11 cents to finish at $2.88 per 1,000 cubic feet.