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Patriot Coal Creditors Want Bankruptcy to Stay in New York

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Patriot Coal Corp. and its creditors and bankruptcy lenders oppose transferring the case to West Virginia from New York, pitting themselves against unions, insurers and the U.S. government, Bloomberg News reported yesterday. The United Mine Workers union and several insurers who have argued for the move to Charleston, W.V., have not proven that it would be more convenient for all creditors or lead to a more economical chapter 11 case, the creditors said in court papers filed on Monday. Patriot, one of the largest coal producers in the U.S., filed for bankruptcy in July. It was asked first by its union to move the case. The U.S. Trustee, an arm of the Justice Department that oversees bankruptcies, joined in the motion, saying the St. Louis-based company created two new units just before its bankruptcy with what appeared to be the sole purpose of avoiding other bankruptcy courts.