Patriot Coal Update: Mining For Venue

Late last week, Judge Shelley C. Chapman of the Bankruptcy Court for the Southern District of New York heard arguments from a number of parties regarding whether the New York bankruptcy court is the proper venue for Patriot Coal Corporation's bankruptcy cases.  In re Patriot Coal Corp., Case No. 1:12-bk-12900.  Judge Chapman did not rule on the venue question from the bench.  Instead, the parties will wait for a ruling while proceeding with the bankruptcy case.

Section 1408 of the United States Code permits a debtor to commence a bankruptcy case in any judicial district in which it has a "domicile, residence, principal place of business . . . or principal assets," or in which the bankruptcy case of an affiliate is pending.  28 U.S.C. § 1408(1) and (2).