Creve Coeur based filed for bankruptcy protection after the close of trading Monday, ending a day of speculation on Wall Street which sent the company's stock prices tumbling, according to Marketwatch.com
Like other domestic coal firms, including Creve Coeur's , Patriot Coal has struggled with weakened demand for coal amid a general push toward natural gas.
According to a company statement, "The coal industry is undergoing a major transformation and Patriot's existing capital structure prevents it from making the necessary adjustments to achieve long-term success," said Patriot Chairman and Chief Executive Officer Irl F. Engelhardt. "Our objective is to use the reorganization process to address important issues in an orderly way and make the Company stronger and more competitive."
The filing does not appear to offer a timetable or specific plans for how Patriot plans to exit bankruptcy. The filing includes requests to continue paying employees and suppliers as usual.
A hotline set up by the company had a recording Monday night saying it was "fully committed" to employees.