Spurred by its creditors' complaints, Patriot Coal Corp. overhauled its sale process as it works to secure a bankruptcy court's blessing, Dow Jones Daily Bankruptcy Review reported today. The new auction plan, which Patriot outlined yesterday before the U.S. Bankruptcy Court in Richmond, Va., gives would-be buyers more time to formulate their challenges to proposed lead bidder Blackhawk Mining LLC and reduces the amount of bidder protections available to Blackhawk. The U.S. Trustee’s office, large banks, the union representing Patriot's miners and the company's unsecured creditors were among those who raised objections to Patriot's auction plans, warning that a speedy sale timeline and substantial bidder protections for Blackhawk would freeze out rival bidders. In response to objections, a Patriot lawyer said that the company extended its auction timeline by about a month, giving rival bidders until early September to submit their offers instead of Aug. 7. An auction would be held Sept. 9, and Patriot would aim to close a sale by Oct. 9.
