Patriot Coal withdraws a $22m deal that's part of its bankruptcy plan, after Clinton called it "outr
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Amanda Becker @AmandaBecker
Patriot Coal withdraws a $22m deal that's part of its bankruptcy plan, after Clinton called it "outrageous"
http://www.reuters.com/article/2015/10/07/us-patriot-coal-alcoa-idUSKCN0S12IM20151007
Deals | Wed Oct 7, 2015 4:29pm EDT
Patriot Coal withdraws Alcoa deal as bankruptcy talks continue
WASHINGTON | By Amanda Becker
A $22 million deal between the Aluminum Company of America and Patriot Coal Corp has been abandoned as the coal company seeks to finalize its bankruptcy plan, which U.S. Democratic presidential candidate Hillary Clinton criticized last week as "outrageous."
Patriot Coal of Scott Depot, West Virginia, has told a U.S. Bankruptcy Court judge it is running low on cash and needed court approval for its reorganization plan to avoid a liquidation. Clinton has said the company's plan would deprive retired workers of healthcare benefits.
As part of that plan, Alcoa Inc was set to pay Patriot $22 million to dissolve a joint venture called the Squaw Creek Coal Company, which operated a mine in Warrick County, Indiana.
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A Patriot subsidiary operated the mine and employed those working there, and, in return, Alcoa reimbursed Patriot for some of the workers' benefits.................