Patriot Coal (PCX) Slammed as Bankruptcy Fears Swirl; Co. Hires Blackstone, Continues to Work with Lenders
Tweet
Share
E-mail
Get Alerts PCX Hot Sheet
Join SI Premium – FREE
Shares of Patriot Coal Corporation (NYSE: PCX) have been absolutely clobbered Tuesday following reports the company may be talking with restructuring advisers, which has raised red flags among investors that bankruptcy could be the end game.
Monday evening, Debtwire reported that Patriot Coal was taking formal pitches from restructuring advisers, including Centerview Partners and Blackstone. Law firm Davis Polk was also mentioned. Debtwire cited three sources familiar the matter.
UPDATE: Patriot Coal issued a press release just after 2pm ET, disclosing the company hired Blackstone (NYSE: BX) and continues to work with lenders to strengthen its finances, including the replacement of its current credit facilities well before certain of its debt obligations become due in March 2013.
The stock was halted several times following the release as traders responded. After hitting a session and 52-week low at $1.36 earlier, Patriot Coal shares last traded at $2.33, still down about 30 percent for the session.
The sell-off is also hitting the entire sector, which is down 1.5%, as represented by ETF Market Vectors Coal ETF (NYSE: KOL).
Monday evening, Debtwire reported that Patriot Coal was taking formal pitches from restructuring advisers, including Centerview Partners and Blackstone. Law firm Davis Polk was also mentioned. Debtwire cited three sources familiar the matter.
UPDATE: Patriot Coal issued a press release just after 2pm ET, disclosing the company hired Blackstone (NYSE: BX) and continues to work with lenders to strengthen its finances, including the replacement of its current credit facilities well before certain of its debt obligations become due in March 2013.
The stock was halted several times following the release as traders responded. After hitting a session and 52-week low at $1.36 earlier, Patriot Coal shares last traded at $2.33, still down about 30 percent for the session.
The sell-off is also hitting the entire sector, which is down 1.5%, as represented by ETF Market Vectors Coal ETF (NYSE: KOL).
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Holcim said to acquire part of James Hardie's EU business
- SpaceX attempted to acquire AI coding startup Cognition - Bloomberg
- Two Binance Employees Detained In The U.A.E. Amid Police Inquiries - NYT
Create E-mail Alert Related Categories
Rumors, Trader TalkRelated Entities
BankruptcySign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
