Patriot Coal

About Patriot Coal

Patriot Coal filed for Chapter 11 bankruptcy on July 9, 2012. Patriot had been spun off from Peabody Energy in 2007. The spinoff saddled Patriot with legacy environmental and pension liabilities while Peabody retained profitable mines. Patriot was also hit by falling coal prices and competition from natural gas. The bankruptcy was contentious, with the United Mine Workers protesting cuts to retiree benefits. Patriot emerged from bankruptcy in December 2013 but filed again in May 2015. Patriot liquidated in 2015, selling mines to Blackhawk Mining and Blackjewel. Environmental liabilities were a major issue, with hundreds of millions in mine reclamation obligations. The case illustrated how corporations use spinoffs to shed liabilities.