UPDATE 1-Peabody on hook for some Patriot Coal retiree benefits -US court
Source: REUTERS
By Nick Brown
Aug 21 (Reuters) - A federal appeals court on Wednesday said Peabody Energy Co must remain on the hook for retiree benefit costs for 3,100 retired workers at a unit of Patriot Coal Corp, its former subsidiary now in bankruptcy.
The decision, handed down by the Eighth Circuit Bankruptcy Appellate Panel, reverses an earlier ruling that abrogated Peabody's agreement to fund those costs.
The reversal is a small victory for workers in their fight against Peabody, which they allege knowingly bankrupted Patriot by spinning it off in 2007 with heavy debts and few strong assets.
Overall, though, coal miners are still expected to sustain major cuts to benefits as a result of Patriot's collapse.
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Read more: http://www.reuters.com/article/2013/08/21/idUSL2N0GM1LM20130821