On Wednesday US Bankruptcy Judge Kathy Surratt-States of the Bankruptcy Court for the Eastern District of Missouri gave the green light to the producer’s disclosure statement, which contains the needed information for creditors to vote on the plan.

Patriot said it would begin the process to solicit votes on the plan immediately.

The court also gave its authorisation to St Louis-based Patriot to progress with its proposed rights offering announced earlier this month, with the $US250 million deal to be fully backstopped by Knighthead Capital Management.

An agreement by financial institutions Barclays and Deutsche Bank to arrange new exit financing and post-emergence credit facilities of $576 million were also ready to move ahead, Surratt-States said, as were settlements with fellow miners Peabody Energy and Arch Coal.

“Today's actions by the court represent important milestones on Patriot's path to emergence as a strong, well-capitalised competitor in the coal industry,” Patriot president and chief executive officer Bennett Hatfield said.

“Taken together, the rights offering and the settlements with Peabody and Arch lay the foundation for completion of our exit financing in the next few weeks.

He said Patriot remained on schedule for emergence from bankruptcy in mid to late December.

Patriot first filed for bankruptcy in July 2012, citing a reduction in demand for coal as well as about $1.6 billion in lifetime retiree healthcare obligations plus other liabilities.

The producer was a spin-off company of Peabody Energy, with the latter’s officials stressing that Patriot was a viable company when it was spun off and its subsequent 2008 takeover of another company, Arch spin-off Magnum Coal, played a role in its problems.

The case is formally known as In re Patriot Coal Corp, 12-bk-51502, US Bankruptcy Court, Eastern District of Missouri (St. Louis).