Statement from Peabody Energy on UMWA Claims:

The UMWA’s claim that Patriot Coal was ‘designed to fail’ is a desperate attempt to rewrite history. Patriot was highly successful following its launch more than five years ago with significant assets, low debt levels and a market value that more than quadrupled in less than a year.

At the time, analysts cited a bright future for the company’s based on its “strong balance sheet,” “strong management team” and “excellent valuation prospects.”

It is our understanding that when Patriot’s market value was high, the company could have strengthened its financial position. Instead, Patriot made a major acquisition of Magnum Coal Company in mid-2008.

A series of other unforeseen events affecting all coal producers followed – all on Patriot’s watch.

These included an unprecedented global financial crisis; development of low-cost shale gas that reduced coal use; burdensome regulation by the U.S. EPA that dramatically increased Patriot’s environmental compliance costs; an increase in safety regulations that, in turn, increased operating costs; and a significant reduction in the price of Patriot’s major product: metallurgical coal.

Peabody has lived up to its obligations and continues to do so. The UMWA is fully aware that this is a matter solely between the union and Patriot Coal, and the proper process for deciding such issues is through the bankruptcy court – not the court of public opinion.

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Comments

  • MIKEYD

    the laws are made to screw their workers in bankruptcy the judge will give patriot anything they want they need to close the loopholes in bankruptcy cases, large companies are using these loopholes everyday in court

  • Big Ugly

    “strong balance sheet,” “strong management team” and “excellent valuation prospects.”

    These were all set up by Peabody, handpicked from there cupboard...No wonder they would say this...It was the plant to begin with......Not only was all the retirees debts put on Patriot but all the old Mining property liabilities also were put on them on purpose...No company would have took that much liability unless the plant to begin with...CEO

  • mountaineer

    RIGHT to WORK is what West Virginia needs! not violent left wing nut jobs.

  • RHytonen

    Yeah, right - "Coal's your friend" ....Just keep votin' Republican, and criticizing the EPA.....

    http://truth-out.org/news/item/13691-in-the-coal-fields-a-novel-way-to-get-rid-of-pensions-is-born

    DUPES!
    Your racism is being used against you on Limbaugh and Fox News, and in ads on all stations, using the funds they steal from YOUR pension! (and the subsidies provided by your taxes.)