Coal news and updates

Patriot Coal enters purchase agreement

Patriot Coal Corp. has entered into an asset purchase agreement with ERP Compliant Fuels LLC (ERP), an affiliate of Virginia Conservation Legacy Fund (VCLF). The agreement is for the acquisition of substantially all of Patriot's assets and liabilities not included in the previously announced sale agreement with Blackhawk Mining LLC.

The contemplated transaction with VCLF/ERP would be consummated pursuant to a chapter 11 plan and is subject to bankruptcy court approval of the sale, confirmation of a chapter 11 plan, and other customary conditions.

Under the terms of the agreement, VCLF/ERP would acquire the Corridor G Mining Complex in southern West Virginia, the Federal Mining Complex in northern West Virginia, and other mining permits for purposes of land reclamation and water quality improvement.

President and CEO of Patriot, Bob Bennett, said, "We are pleased to have reached this agreement to sell substantially all of Patriot's remaining assets and liabilities to VCLF, which enables us to take another important step forward in Patriot's chapter 11 process. In VCLF, we have found an experienced partner who will responsibly manage our remaining assets consistent with the highest environmental standards, and we believe this proposed transaction is in the best interest of Patriot and its stakeholders."

Patriot's mining operations and customer shipments will continue in the ordinary course during the sale process.

source: http://www.worldcoal.com