Coal Stocks Taken Down After Troubles Emerge at Patriot Coal (PCX)

Market Vectors Coal ETF (NYSE: KOL) traded lower today following negative speculation about Patriot Coal Corporation (NYSE: PCX). Reports said the company may be talking with restructuring advisers.

In light of the 50 percent plunge in the stock, Patriot Coal Corporation (NYSE: PCX) announced intra-day and update on its refinancing. The company entered into a commitment letter for a new revolving credit facility and new term loan facility for a total of $625 million from Citigroup Global Markets, Inc., Barclays Bank PLC and Natixis and continues to work with lenders to strengthen its finances.

Patriot Coal said it has engaged The Blackstone Group and continues to work with Davis Polk & Wardwell LLP, its long-standing counsel, to achieve an optimal financing package.

Patriot Coal has a 0.72 percent weighting in KOL. KOL is down 25 percent in past three months.

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