Patriot Coal, one of the largest coal producers in the United States, filed for Chapter 11 bankruptcy last week, with $3.07 billion in debts.
According to Reuters, the bankruptcy will include nearly 100 affiliates and was prompted by consumers’ turning to cheaper electrical producers as natural gas prices are dropping. According to Reuters, “Coal producers’ shares have plummeted as natural gas prices tumbled to the lowest in a decade this year, and the U.S. Environmental Protection Agency proposed new rules that would make it nearly impossible to build coal-fired power plants.”
“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,” Patriot Coal Chairman and Chief Executive Irl Engelhardt said in a statement to Reuters.
Through filing Chapter 11 bankruptcy, Patriot Coal will remain in control of its finances with oversight from the court and retain control of its assets while working on a settlement for investors.
If you are struggling with personal financial problems, you also have bankruptcy restructuring options. Chapter 13 bankruptcy allows you to retain control of assets and work out a repayment plan for debts. Items like cars or homes can be saved under a Chapter 13 bankruptcy, while working on the repayment plan. A Chapter 13 bankruptcy also allows for the discharge of unsecured debt, like medical bills or credit card debt. It’s often the best bankruptcy plan for people who want to restructure their finances and protect their property.
Talk to an attorney about what Chapter 13 bankruptcy can do for you. If your financial situation is a problem, contact our Washington DC and Maryland bankruptcy attorney now for a free consultation.