Miners’ Benefits Threatened in Patriot Coal Bankruptcy
Patriot Coal Co., a spin-off of Peabody Energy, recently filed for bankruptcy again, their second in 3 years. Their plan is to divert money that has been set aside for the health care benefits of 969 retired Indiana coal miners to pay for bankruptcy lawyers and other costs. Earlier this month, Patriot announced plans to lay off 2,000 miners in West Virginia, and moved to finalize a deal with other creditors. Their new buyer has no interest in assuming Patriot’s obligation to the Indiana retirees.