Seeking Alpha

Bankrupt Patriot Coal (PCXCQ.OB) and its creditors are looking at whether the firm's spinoff...

Bankrupt Patriot Coal (PCXCQ.OB) and its creditors are looking at whether the firm's spinoff from Peabody Energy (BTU) in 2007 was a "fraudulent transfer" aimed at relieving the latter of retiree health and pension benefits, problematic mines and other liabilities. Patriot and the creditors could gain "a sizable recovery" if evidence of fraud is found. Peabody naturally denies that anything was amiss.
Comments (7)
  • source?
    4 Apr 2013, 06:49 AM Reply Like
  • NO, I think the naturally is Patriot looking for ways to get money from anyone else ,, they are the ones that are in bankruptcy so why not blame someone else for their problems.. BTU was at fault.. of course.. it is the American way.. blame someone else for your failure!
    4 Apr 2013, 07:42 AM Reply Like
  • good luck with that!
    4 Apr 2013, 08:27 AM Reply Like
  • Six years ago is a long time to blame someone else for current mismanagement/business problems that led to bankruptcy. However, I guess PCX is taking a cue from the current U.S. administration which continues to blame the previous one for their incompetence of the last four and half years of their management.
    4 Apr 2013, 08:50 AM Reply Like
  • well, there's not doubt that btu spun off all their problems into a weaker pcx, but the crumbling of the coal market is what destroyed pcx, and i don't know how you'd go back after the fact and get btu to pay up.
    4 Apr 2013, 09:15 AM Reply Like
  • Hell, it's worth a "hail mary" try....
    4 Apr 2013, 09:44 AM Reply Like
  • Editor, The Lewis Letter http://bit.ly/W3uM5K
    The Peabody Energy management is not long on brains, pure complacency toward stuckholders. Worse in American corporate history. But I suspect they are short on misdeeds, probably honorable in their codes of ethics. Just poor and simple managers of a great asset laden business with decades of reserves. Soon to be replaced, I hope.
    4 Apr 2013, 10:13 AM Reply Like
DJIA (DIA) S&P 500 (SPY)