Patriot Coal Corporation (fka PCXCQ)

[jaxstraw]

The 8.25% bonds were trading at $34.50 after the announcement.

A few DDI projections have the anticipated recovery of those bonds at $40-$70 upon emergence.

It appears that even the bondholders will not see full recovery, and in bankruptcy 'speak' that means shareholders will see no recovery under the Absolute Priority Rule.

If folks want to play this stock while in BK, understand what that means and how long it should be held before selling and taking profits.

Of course things could change during the BK process, but bonds always will give major clues way before equity for the long term.