Peabody Energy Pleased with Court Ruling On Patriot Coal Bankruptcy
Peabody Energy (NYSE: BTU) is pleased with Wednesday'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.