Patriot Coal non-union retirees seek official committee representation

By Caroline Salls

Pittsburgh, Jan. 9 - A group of Patriot Coal Corp. non-union retirees has asked the U.S. Bankruptcy Court for the Eastern District of Missouri to order the appointment of an official non-union retiree committee for the company's Chapter 11 case, according to a Jan. 8 court filing.

The retirees said the company sent out a mass mailing to non-union retirees in December, informing them that it would be seeking to unilaterally terminate all retiree benefits.

The retirees said this was done without previously notifying the court or seeking appointment of an official retiree committee.

"Now that the debtors have publicly announced their intent to terminate said retiree benefits, a retiree committee must be formed as required by [Bankruptcy Code] section 1114 without delay," the motion said.

"This group of retirees gave their human capital to the debtors, and as part of their employment consideration they were promised lifetime retirement benefits, often in lieu of other direct benefits, such as increased salaries.

"The retirees at issue now fear the loss of their benefits without any understanding as to their rights and protections pursuant to section 1114 and without any unified voice to speak on their behalf."

Patriot Coal, a St. Louis-based miner, producer and seller of thermal coal, filed for bankruptcy on July 9, 2012 in the U.S. Bankruptcy Court for the Southern District of New York. The case was transferred to the U.S. Bankruptcy Court for the Eastern District of Missouri under Chapter 11 case number 12-51502.

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