Peabody Energy Responds to Patriot Coal Claim
Peabody Energy (NYSE: BTU) states: Our contract with Patriot Coal (OTC: PCQCX) states that we will fund a portion of Patriot's retiree healthcare expenses for specified retirees. We have been providing funds under this contract since the spinoff.
This contract also appropriately states that, should Patriot's benefit obligations decrease, our funding would proportionately be reduced. Patriot is taking the untenable position that our payments should continue in full in the future even if Patriot's expenses are reduced.
Such a claim is not only unreasonable, but counter to the fundamental basis of the language in the contract. These are Patriot's obligations and, to the extent they are reduced, we will meet our agreement with Patriot to fund the new lower levels.
CONTACT:Vic Svec(314) 342-7768
SOURCE Peabody Energy