As mineworkers and retirees battle to salvage their pensions and benefits from the bankruptcy of Patriot Coal Corp, lawyers for their union are trying an unusual gambit - and one that may be a test case for workers' rights when companies spin off assets. With a difficult road ahead in bankruptcy court in St. Louis, the United Mine Workers of America has brought a parallel lawsuit 500 miles away, in West Virginia, the heart of coal country.That lawsuit is not against Patriot but instead challenges Peabody Energy Corp, which spun Patriot off in 2007, saying the former parent must pay retiree pensions and benefits if Patriot cannot.While experts say the lawsuit is a long shot, if successful it could upend how companies like Peabody dispose of assets in the future. And, for mineworkers, the lawsuit seeks to preserve a right to lifetime health and pension coverage that dates back to the Truman administration.The union argues that when Peabody spun Patriot off in 2007, it knew the new company was going to fail. Parting with only about 16 percent of its assets, Peabody loaded Patriot up with nearly 60 percent of its post-employment benefit liabilities, the union alleges.
Peabody Energy Corporation (Peabody) is a private-sector coal company. Shares of BTU remained unchanged at $20.06. In the past year, the shares have traded as low as $18.22 and as high as $31.38. On average, 7634910 shares of BTU exchange hands on a given day and today's volume is recorded at 0.
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