Patriot Coal Corp., which emerged from chapter 11 protection less than two years ago, is working with restructuring advisers to address its capital structure amid continued decline in the coal industry, MarketWatch.com reported on Friday. The Scott Depot, W.Va.-based mining company is working with lawyers at Kirkland & Ellis and financial advisers at Alvarez & Marsal and Centerview Partners. Patriot filed for chapter 11 bankruptcy protection in 2012 to slash its $3 billion debt load, much of which was tied to environmental and labor obligations. It emerged the following year, turning over most of the ownership of the company to bondholders including New York hedge fund Knighthead Capital Management LLC. But conditions in the coal industry continued to deteriorate amid a sluggish market for the metallurgical coal used in steelmaking and a decline in natural gas prices that hurt the market for thermal coal used by power producers. Coal producer Xinergy Ltd. filed for Chapter 11 bankruptcy protection earlier this month. Walter Energy Inc. said on Wednesday that it opted to skip an interest payment, entering a 30-day grace period as it works with creditors to help the company "weather a highly competitive and challenging market."
