Here is what is worrying investors. The rumor mill that...
Patriot Coal principal accounting officer resigns
Patriot Coal announced that it replaced its principal accounting officer who resigned effective June 22, according to a filing with the Securities and Exchange Commission late Friday. The announcement capped a day in which the St. Louis, Mo.-based coal producer's bonds plunged yet again due to reports of a potential covenant breach at the end of the month, necessitating management to shop for DIP financing.
The officer stepping down is Christopher Knibb, whose role will be taken over by the current CFO Mark Schroeder, according to the announcement. Knibb was promoted to the position in October 2011 from his position as a VP and controller. Replacing Knibb is the latest personnel shift in an ongoing shakeup for the company, which had already announced a new leadership team May 29, including the insertion of the board chairman Irl Engelhardt as CEO to take over for Richard Whiting, who had headed the company since 2007.
Patriot did not respond to a request for comment by press time.
A round lot of Patriot’s 8.25% notes due 2018 traded at 36 Friday afternoon, the middle of a 33/37 range reached earlier that day as the notes plunged to an all-time low, according to trade data. The CCC/Caa2 senior notes were in the mid-90s at the outset of the year, trade data show. Only odd lots have traded at 38 today.
Patriot also has $200 million in 3.25% convertible notes due May 2013 outstanding that are subordinate to the 8.25% notes. – Max Frumes
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