Patriot Coal gets approval of Peabody health care refund settlement

By Mark Reccek

Bethlehem, Pa., Sept. 18 – Patriot Coal Corp. received approval of a health care refund settlement with Peabody Energy Corp. and Peabody Holding Co. LLC, according to an order filed Friday with the U.S. Bankruptcy Court for the Eastern District of Virginia.

The dispute involved about $3.1 million of health care refunds Patriot Coal did not pay Peabody.

As previously reported, the settlement agreement provides that Patriot will keep approximately $2 million of the health care refunds that it received prior to the filing of the case, Patriot will pay Peabody any health care refunds that it receives on or after the filing of the case and Patriot will instruct third-party payees and Alcoa, Inc. to pay all health care refunds directly to Peabody.

Patriot Coal, a Richmond, Va.-based miner, producer and seller of thermal coal, filed for bankruptcy on May 12. The Chapter 11 case number is 15-32450.

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