Patriot Coal settles claim with Peabody; Peabody will provide $310 million to fund pensions

摘要

PATRIOT COAL Corp. announced that it has agreed to a settlement with Peabody Energy Corp. regarding the funding of health benefits for 3,100 retirees that Peabody had agreed to continue covering after it spun off the now-bankrupt Patriot Coal in October 2007. As part of the settlement, Peabody will provide $310 million to fund health and pension benefits and provide $140 million in liquidity funding to Patriot. The settlement will help Patriot emerge out of Chapter 11 bankruptcy by the end of the year, Reuters reported.