Reuters reported that mine workers are suing Peabody Energy Corp and Arch Coal Inc. The suit centres on the workers’ belief that the companies are obliged to pay pension and health care benefits that were transferred to Patriot Coal in a 2007 spinoff.
As quoted in the market report:
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.