Patriot Announces Chapter 11 Bankruptcy

St. Louis-based Patriot Coal Corp., one of the largest coal-producers in West Virginia, has announced it will reorganize under Chapter 11 bankruptcy. Officials say mining operations and customer shipments will continue while Patriot undergoes "comprehensive financial restructuring." The company made the filing in New York and said it had more than $800 million in financing from banks that would help during the bankruptcy process. Patriot Chairman and CEO Irl F. Engelhardt says the company's outlook has been affected by reductions in demand, competition from natural gas, challenging environmental regulations affecting the cost of producing and using coal and a weak international and domestic economy. Patriot has 10 mining operations in West Virginia, including large mines in Logan and Monongalia counties. United Mine Workers of America International President Cecil E. Roberts says it is important for UMWA members working at Patriot operations to understand that the company is not shutting down, and that their pay and benefits will not be affected by this filing.