Patriot Reaches Deal to Fund Retirement Benefits
Patriot Coal has reached a deal with Peabody Energy and Arch Coal to help fund future benefits for Patriot retirees. Patriot said in a press release that will clear the way for the company to finish out its financial reorganization by the end of the year. In a separate announcement, the Charleston Gazette reports United Mine Workers has reached "a global settlement" with Patriot and with Peabody that will provide more than $400 million to cover future health-care benefits for retirees affected by Patriot's bankruptcy. Under the deal with Knighthead Capital Management, Patriot will get $250 million in new capital for benefits.