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Bankrupt Patriot Offers Equity Stake In Reorganized Company
By: Associated Press
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Bankrupt Patriot Coal's latest offer to a union angry about the possible loss of retirees' pension and health care benefits includes a 35 percent equity stake in the reorganized company.
The United Mine Workers of America didn't immediately comment Friday. It has staged several protests in St. Louis and in Charleston, drawing attention to what it calls broken promises to pensioners.
This is Patriot's fifth proposal.
Patriot says it can't survive or protect some 4,000 existing jobs without tackling the $1.6 billion benefits liability. It also still wants to modify the UMWA contract to create a trust fund for those expenses.
Last month, Patriot proposed creating the Voluntary Employee Beneficiary Association trust by July with $15 million.
The new proposal extends that to January 2014.