Blackhawk Mining is presently offering to swap out some of Patriot’s funded debt with new debt worth $643m and take 30% ownership in the new company to be created during the bankruptcy plan, Bloomberg reported.
The bankrupt mining company said that is in talks with Blackhawk on the terms of a formal asset purchase agreement.
Patriot was saved from bankruptcy back in 2012 and 2013, only to seek chapter 11 protections again in May.
The company blames the lack of demand for coal as one of the reasons for its fall.
Patriot president Bob Bennett said: "We feel strongly that the proposed transaction with Blackhawk is in the best interest of Patriot, and its employees and stakeholders.
"Blackhawk shares our dedication to operational and environmental excellence, and this transaction creates a viable path forward in this challenging market environment, enabling our mining operations to continue serving customers and preserving jobs in the communities in which they operate."
Some of the assets of Patriot are not included in the deal with Blackhawk and the company will undertake a separate sale process for the assets.
