Statement Of Peabody Energy Regarding Ruling On Patriot Coal Bankruptcy
ST. LOUIS, Aug. 21, 2013 /PRNewswire/ -- Peabody is pleased with today's ruling by the Eighth Circuit Bankruptcy Appellate Panel. The court said that Peabody was obligated to make payments (that have been consistently paid) until such time as a new labor agreement was approved between Patriot and the UMWA.
The Panel did not rule on how Peabody's level of funding would be determined with this new agreement in place: "We are not concerned with, and express no opinion on, what effect a new labor agreement would have on Peabody Holding's obligation to the assumed retirees."
Now that a new labor agreement has been approved, the provisions of the contract with Patriot will apply and any future funding levels are yet to be determined.
SOURCE Peabody Energy