Patriot Coal wins court permission to enter union agreement

|About: Patriot Coal Corp. (PCXCQ)|By:, SA News Editor

Patriot Coal (PCXCQ.OB) wins court approval of a hard-fought agreement with the mining company’s union, paving the way toward an exit from bankruptcy this year.

The new agreement calls for wage changes including raises of $0.50/hour every year during 2015-18 and health care benefits similar to those of non-union employees.

The bankruptcy judge also grants Patriot’s request to change its loan agreement to avoid a default; the amendment drops an earnings threshold to $101.3M vs. $205M under the previous agreement.