A $22 million deal between the Aluminum Company of America and Patriot Coal Corp. has been abandoned as the coal company seeks to finalize its bankruptcy plan, Reuters reported yesterday. Patriot Coal has told a bankruptcy court judge that it is running low on cash and needed court approval for its reorganization plan to avoid a liquidation. As part of that plan, Alcoa Inc. was set to pay Patriot $22 million to dissolve a joint venture called the Squaw Creek Coal Co. A Patriot subsidiary operated the mine and employed those working there, and, in return, Alcoa reimbursed Patriot for some of the workers' benefits. The deal with Alcoa that was withdrawn yesterday is one piece of Patriot's bankruptcy plan, which has also involved auctioning off its assets.
