Patriot Coal Corp. (PCX) has fielded formal pitches from restructuring advisers in the event the company can't satisfy its near-term financing needs, Debtwire reported.
The report, which cited three unnamed sources familiar with the matter, said the pitches involved Centerview Partners LLC and Blackstone Group L.P. (BX) and were organized by law firm Davis Polk & Wardwell LLP on Patriot's behalf.
A Patriot representative wasn't immediately available for comment.
Last week, Patriot lowered its sales volume outlook for metallurgical coal for the rest of the year, citing the potential default of a key customer. Two ratings firms soon after downgraded the company's credit ratings.
Patriot's already battered shares plummeted 29% in heavy trading to $2.39, dragging down a handful of coal producers' stocks, as well. Arch Coal Inc. (ACI) slipped 8% to $7.10, while Alpha Natural Resources Inc. (ANR) slid 4.3% to $11.17 and Peabody Energy Corp. (BTU) fell 3.5% to $23.77.
Full story: www.debtwire.com
-By Dow Jones Newswires; 212-416-2356