Bankrupt Patriot Coal, mine workers union reach deal

Patriot Coal (PCXCQ.OB) and the United Mine Workers say they reached a settlement the union claims eases the severity of wage and benefits cuts a bankruptcy judge had allowed the company to impose.

Patriot says the deal keeps the company on track for reorganization, not liquidation; the union says its 1,800 active or laid-off members in West Virginia and Kentucky can vote on the deal Friday.

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Comments (3)
  • samdehne
    , contributor
    Comments (965) | Send Message
    Who Would Have Thought?
    This dramatic and relatively unexpected news has been treated as almost a non-event by the stock market and/or MMs.
    You would think the stock would have some sort of reaction.. but in the hour and 1/2 since announcement a measly 7,000 ($1,400) shares have traded.
    If/when hqtrs reports that it is going to do the honorable (win-win-win) thing and NOT cancel the stock.. then I guess there might be some stock price reaction.
    12 Aug 2013, 04:36 PM Reply Like
  • samdehne
    , contributor
    Comments (965) | Send Message
    If they announce they are not canceling the PCX stock (a la American Air) the stock will go back up to at least $5 in the
    next few months. Patriot has tons and tons of assets.
    12 Aug 2013, 04:36 PM Reply Like
  • chistletoe
    , contributor
    Comments (271) | Send Message
    Part of the deal they have made with the unions is that they will replace capital (cash) backing up the health savings plan with Patriot stock. Obviously that means everyone intends for the stock to have some value. It also means that current equity will be significantly diluted. The fact that the stock price did not move suggests to me that the people "in the know" are planning some kind of reverse split when Patriot emerges. Nothing to do here but continue to wait .....
    14 Aug 2013, 09:13 AM Reply Like
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