Patriot Coal Corp. is in talks with Aurelius Capital Management LP and Knighthead Capital Management LLC over a potential investment of “hundreds of millions of dollars” that would help fund its reorganization, and seeks court permission to pay them fees, Bloomberg News reported yesterday. Patriot is negotiating with the two investors, who may participate in a rights offering that could serve as the basis for an exit from its chapter 11 case, the bankrupt mining company said in court papers filed on Tuesday. Patriot recently won court permission to change its agreements with unionized workers, and is still trying to reach a consensus on how to do so, Patriot also said.
