Sunday, June 28, 2015

Bankruptcy: Amid More Objections To Blackhawk Deal, Patriot Eases Some Bid Terms


Alan Zimmerman

Patriot Coal has amended the bidding procedures for the sale of its assets to, among other things, extend the timeline for the bidding process, reduce the bid protections for stalking-horse bidder Blackhawk Mining, and ease the overbid requirements of the bidding process.

Saying it was “sympathetic” to many of the “host of objections” it has received to the proposed bidding procedures and the Blackhawk deal, the company said in a response filed today with the bankruptcy court in Richmond, Va., that it used those objections to press Blackhawk for additional concessions, adding that its efforts “have yielded 17 additional days to solicit bids, a 35% reduction in the breakup fee (from $19 million to $12 million), lower cash deposit requirements for third party bidders, an 80% reduction in the overbid requirement (from $5 million to $1 million), and the agreement to consult with the [unsecured creditors’] committee and other key creditors on various issues related to the bidding procedures, including whether a qualified bid has been submitted.”

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