Peabody Energy Corp. and Arch Coal Inc. are being sued by mine workers who contend that the companies have an obligation to pay pension and health care benefits that were transferred to Patriot Coal in a 2007 spinoff, Reuters reported yesterday. Eight mine workers and their union, the United Mine Workers of America, are seeking class action status in a lawsuit filed yesterday. The roughly 10,000 union members whose benefits were transferred in the spinoff are worried that Patriot, in chapter 11 bankruptcy, will try to take advantage of laws allowing bankrupt companies to cut retiree health care and pensions. Some of the workers whose benefits were transferred retired before the spinoff and never actually worked for Patriot. Read more:
http://www.reuters.com/article/2012/10/25/patriot-lawsuit-idUSL1E8LOOXT…
In related news, the CEO of bankrupt Patriot Coal is stepping aside less than five months after taking the job, the Associated Press reported yesterday. Irl Engelhardt, a long-time executive at Peabody where he served as chairman and director of one of the world's largest coal producers, took over this year just weeks before the troubled Peabody spin-off sought bankruptcy protection. The company did not provide more details about the change at the top of the company, or about changes to corporate governance announced yesterday. Patriot named Bennett Hatfield to succeed Engelhardt. Read more:
http://news.yahoo.com/another-shift-top-patriot-coal-170854051--finance…