Peabody reaches deal over Patriot retiree benefits - 14 News, WFIE, Evansville, Henderson, Owensboro

Peabody reaches deal over Patriot retiree benefits

Posted: Updated:

Coal producer Peabody Energy Corp. says it will pay hundreds of millions of dollars to settle a drawn-out legal dispute over health care and pension benefits for thousands of retirees who worked for bankrupt Peabody spinoff Patriot Coal Corp.
The St. Louis-based companies and the United Mine Workers of America union announced the deal late Wednesday. It will be submitted for consideration to a St. Louis federal bankruptcy judge overseeing Patriot's bankruptcy.
As part of the deal, Peabody will pay $310 million over four years to fund the health and pension benefits to settle all claims by Patriot and the miners' union.
Peabody also will provide about $140 million in letters of credit to Patriot, which expects to emerge from Chapter 11 bankruptcy by the end of this year.

(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

Powered by WorldNow