Patriot Coal: Bankruptcy Ruling May Affect Retiree Benefits

A bankrupcy court in Missouri recently approved Patriot Coal's request to make significant cuts for 23,000 union retirees and dependents while also changing labor contracts among current employees.  The two sides have continued negotiations in order to salvage a deal that the union would approve. The bankruptcy court's ruling has important implictions regarding ERISA protection and whether benefits already bargained for can be modified in the face of bankruptcy.  This will be an important case going forward.