Patriot Coal Corp., the bankrupt mining company facing protests as it seeks to cut benefits to union workers, revised its proposal and offered them an equity stake in a reorganized company, Bloomberg News reported yesterday. Under the new proposal submitted to the United Mine Workers of America (UMWA) on Wednesday, the UMWA would get a 35 percent stake in a reorganized company. The company’s initial proposal was made in November, and the latest proposal had been to give the UMWA an unsecured claim in the bankruptcy. Patriot filed for bankruptcy in July, citing falling demand for coal and obligations to pay $1.6 billion in lifetime health care for its 8,100 retirees. Patriot is seeking to trim costs by negotiating with unionized employees, and the St. Louis-based company said that it needs to shed at least $150 million more in labor expenses to avoid liquidating in bankruptcy, an outcome it says would be worse for retirees, employees and creditors.
