Patriot Coal Corp. on Friday filed a restructuring plan that would pay back secured creditors and wipe out shareholders, four weeks after reaching new, cost-saving labor contracts with unionized workers, Reuters reported on Friday. In court papers, Patriot detailed a plan that would pay back secured creditors in cash while cutting recoveries for unsecured creditors, who would be given equity in the restructured Patriot. Current equity holders are not expected to recover anything. Patriot said that it will provide more detail on the plan this week. The plan still needs the support of creditors, along with approval by Judge Kathy Surratt-States.
