Patriot Coal Corp. said yesterday it received court permission to send its bankruptcy exit plan to creditors for a vote, positioning it to leave chapter 11 by year's end, Reuters reported yesterday. The company said in a statement that a bankruptcy judge in St. Louis approved the plan outline, allowing it to be sent to creditors for their assessment of the overall plan. Under the plan, retiree benefits would be reduced, while current workers would absorb cuts in salary, vacation time and other perks. Healthcare benefits would be transferred to an outside trust. The company would operate after bankruptcy with the help of $576 million in funding from Barclays Plc and Deutsche Bank AG. The court also approved a rights offering backstopped by Knighthead Capital Management, Patriot said. The offering, announced last month, will raise $250 million in new capital.
