Peabody Energy Corp, which created now-bankrupt Patriot Coal through a spin-off, said that an offer to settle claims relating to health care benefits for Patriot Coal retirees had been rejected by the United Mine Workers of America, Reuters reported yesterday. Peabody and Patriot have been fighting over the funding of benefits for about 3,100 retirees that Peabody agreed to continue covering after the October 2007 spin-off of Patriot. Peabody said that its mid-August offer to settle all claims with the UMWA could have been used to provide the retirees with lifetime health care benefits comparable to those of Peabody's active corporate employees. Earlier this month, Peabody said that it had no obligation to fund health and pension benefits for Patriot retirees affected by the company's insolvency, arguing that new labor deals between Patriot and the UMWA effectively relieved it of any funding obligations.
