Patriot May Face $1B Claim If It Exits Pension Plan, Court Told

Law360, Chicago (April 15, 2013, 6:02 PM EDT) -- A multiemployer union pension plan said Friday that Patriot Coal Corp.’s bid to withdraw from the plan could result in a nearly $1 billion claim that would threaten the bankrupt company’s reorganization.

In an objection filed in Missouri bankruptcy court, the United Mine Workers of America 1974 Pension Trust argued that the plan could be rendered insolvent if Patriot halts its contributions, which currently total nearly $21 million a year, forcing further cuts to the already modest pensions of 93,000 retired miners and their beneficiaries from...
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