Patriot Coal Creditors Seek to Probe Peabody Over Spinoff
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Patriot Coal Corp.’s creditors want to investigate Peabody Energy Corp.’s 2007 spinoff of the coal producer, saying the transaction rid Peabody of $600 million in health-care and environmental liabilities.
Patriot and its creditors’ committee sought permission for the probe today in U.S. Bankruptcy Court in St. Louis, where both companies are based. Patriot filed for bankruptcy in July, seeking to reorganize and shed some of the $1.6 billion it estimates is owed for lifetime health care for 8,100 retirees.