NEW YORK (AP) - Patriot Coal Corp. is filing for Chapter 11 bankruptcy protection to restructure its business as it deals with reduced demand for coal and rising costs.
Patriot says it will continue shipping and mining operations, and has received a commitment for $802 million debt financing from Citigroup Global Markets, Barclays Bank, and Merrill Lynch. The St. Louis company is filing for reorganization in the Bankruptcy Court of the Southern District of New York.
Coal-mining companies have struggled recently because U.S. demand and prices for coal are down, partly because of low prices for natural gas. Patriot says weak economic conditions in the U.S. and overseas have also hurt its business. It also says environmental regulations have driven its costs higher.
Patriot also says several customers have canceled their contracts.
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