Patriot Coal faces several dozen objections to a chapter 11 plan that calls for the sale of its mines, with the federal government, key creditors and its miners’ union among those crying foul, the Wall Street Journal reported yesterday. Many creditors don’t believe that the company’s plan to sell its mines to new owners is feasible, according to court filings. That includes the official committee representing Patriot’s unsecured creditors, including the miners’ union, a related pension fund, bondholders and the company’s suppliers and vendors. West Virginia’s environmental regulator said that the contingencies involved make Patriot’s plan “nothing more than a wing and a prayer” and is thus “destined to fail.” In court filings, Patriot acknowledged the risk that its sales might not close, among other contingencies. Still, the company said that the “compromises and transactions” at the heart of the plan are fair and provide the best possible recovery to creditors.
