Reuters: Bankruptcy News: UPDATE 1-Patriot Coal gets court OK for DIP financing

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UPDATE 1-Patriot Coal gets court OK for DIP financing Jul 11th 2012, 00:27 Tue Jul 10, 2012 8:27pm EDT July 10 (Reuters) - Patriot Coal Corp, which filed for bankruptcy on Monday, said it received court approval for an $802 million debtor-in-possession (DIP) financing on an interim basis. The company was granted authorization to immediately access $677 million of the DIP financing. Patriot Coal is the first U.S. coal producer to seek court protection since prices began to plummet as electricity producers turned to cheaper natural gas. The company also said it received an approval to pay wages and provide health care and other benefits to employees. Patriot Coal and nearly 100 affiliates were part of the Chapter 11 filing in the U.S. bankruptcy court in Manhattan. Patriot said it had $3.57 billion of assets and $3.07 billion of debts. On Monday the company said it arranged for $802 million of financing to help it continue mining and shipments during the reorganization. The case is in re: Patriot Coal Corp, U.S. Bankruptcy Court, Southern District of New York, No. 12-12900. (Reporting by Juhi Arora in Bangalore; Editing by Himani Sarkar)

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