Cases & Deals

Peabody Energy successful in defense of Patriot Coal's claim

Client(s) Peabody Energy Corporation

Jones Day represented Peabody Energy Corporation ("PEC") when Patriot Coal revisited bankruptcy on May 12, 2015, having filed for chapter 11 protection in the Eastern District of Virginia with $2 billion in assets against $2.4 billion in debt (collectively, "Patriot 2"). In connection with Patriot 2, Jones Day successfully defended PEC in various claims asserted by the Patriot debtors and certain of their creditors against PEC that related to the 2007 spinoff of Patriot by PEC. Such defense included, significantly, a resolution of Patriot's and the United Mine Workers of America's (the "UMWA") claim that PEC remained obligated to pay the UMWA $145 million under a contract between, PEC, Patriot and the UMWA that Patriot breached and then rejected in Patriot 2.