Replies to post #4783 on Patriot Coal Corporation (fka PCXCQ)

[56Chevy]

could it be possible they are waiting on the release of some disclosures, such as what PCX states what they are going to do in the BK and recovery outline?

I use the quotes so we don't misunderstand which Q goes with which response.

It's highly unlikely they are "waiting". Why? These guys aren't known for being bashful or timid when it comes to protecting their interests. It is true this BK is still in the very early stages since they haven't even picked which cage to hold the fight in yet. I have not checked the court docs on PCX for quite a while so there very well could be new information on this...I just don't recall any past petitions/motions from any large equity holder(s) requesting that shareholders have a seat at the table.

Another thing to keep in mind is if some of these large equity holders do hold debt as well they must basically abandon one of those holdings due to a conflict of interest (the conflict comes in play because of class holder voting rules). In that case debt will always be preferred. Why? All the laws in BK are designed & meant for recovery of debt above anything else..not the recovery of equity.

Just trying to figure out WHY they are waiting to do anything (besides what you also pointed out that they may also hold some of the debt as well)

I'm not saying these guys are 'cool' with the idea that their equity holdings are 99.99% DOA..that was never the plan going in...they aren't the least bit happy about this. Their attention turns to Tax options/considerations. PCX gave them lemons ..they'll have to make tax lemonaide the most financially benefitial way.

I'm sure it sounds like I've done everything but stick a RIP headstone on PCXs' grave. Its not a forgone conclusion equity gets wiped out. I'm just saying BK is a sobering ordeal... and the things you think come into play rarely ever do. More often than not..up is really down.. and on is really off in BK.

This BK is a frustrating thing in my mind because I want the miners to win..I want the creditors to win ..I want the company to win and I want the shareholders to win.

I'm just not sure how that happens :~?