It all depends on motherhood, apple
pie, American flag and and honest
court system.
(ONE THAT WILL OVERRULE PCX HQTRS' DIABOLICAL
SCHEME TO PILFER BOUGHT AND PAID FOR
STOCK FROM THE CITIZENRY)
C'mon judge.. look how things worked
out win win win for American Air that
DID NOT STEAL STOCK FORM ITS PEOPLE.
"On Tuesday, it is Patriot Coal Corp.'s (PCXCQ) turn to seek court approval of its bankruptcy-exit plan before a St. Louis judge.
The coal-mining company plans on funding its exit from Chapter 11 with $576 million in new financing as well as the proceeds from the sale of new notes and warrants in a $250 million rights offering.
Under Patriot's Chapter 11 plan, senior bondholders owed $250 million, as well as the holders of $24.75 billion in bond guarantee claims against Patriot's subsidiaries, will share in 60% of Patriot's new common shares. They will also be eligible to purchase new notes and warrants in the rights offering, together worth $138.46 million.
The holders of $200 million in convertible bond debt, as well as Patriot's general unsecured creditors, would get 5% of the new common stock as well as the ability to purchase up the new notes warrants in the rights offering, worth $11.55 million.
Patriot's current shareholders would see their shares canceled and wouldn't receive any payment under the plan. (We're talking maybe a $million or so to do the honorable thing.)
The plan also contains settlements with Arch Coal Inc. (ACI) and Peabody Energy Corp. (BTU), which spun off the mining units that came to comprise Patriot. The deals resolve a long-running battle over who is responsible for the liabilities Patriot took on as a result of the spinoffs.
Patriot, which mines for coal throughout Appalachia and the Illinois Basin, sought Chapter 11 protection in July 2012."
