Trading Extremely Volatile In Patriot Coal as Bankruptcy Fears Loom
All hell has broken loose in shares of St. Louis-based Patriot Coal (NYSE: PCX) on Tuesday after a report from Debtwire said that the company is seeking a firm to help with its restructuring efforts. The report said that "Patriot Coal on Friday fielded informal pitches from restructuring advisors, said three sources familiar with the matter. The distressed coal miner aims to retain the professional in the event the company can't satisfy its near-term financing needs."
In the wake of the report, volume has exploded in the name and the stock was down as much as 59% at one point. Subsequently the company has issued a press release saying that it is continuing to work with lenders in order to strengthen its financial picture.
In particular, the company said that "Patriot Coal Corporation has engaged The Blackstone Group and continues to work with Davis Polk & Wardwell LLP, its long-standing counsel, to achieve an optimal financing package." In the wake of this press release, PCX shares have rebounded sharply and were last trading down 28.27% to $2.41.
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