Wondering why PCX is plummeting, and slowly taking the entire energy complex lower? It is due to the following report from DebtWire as of last night, and reposted this morning.
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 professionals in the even the company can't satisfy its near-term financing needs.
Centerview Partners and Blackstone were among the shops that presented at the beauty pageant, which was organized by law firm Davis Polk on Patriot's behalf, two of the sources specified.
Patriot has been garnering significant market attention recently due to its cash-burn trend and difficult raising new capital. The company had to delay launching a USD 625m refinancing deal for syndication last week after it disclosed a potential contract cancellation with a key customer.
Sorry PCX - better luck next time. We have two words of advise for you: Chesapeake... and TBTF. If your balance sheet was a horrible tangled morass of countless HY bonds, the creditors would have no choice but to refi (probably via Jefco and Goldman). Alas, you are on your own now.