"Updated 11:30 a.m., Jan. 5 with details of new agreement - A health fund for retired miners will stay solvent for at least 10 more months.
Peabody Energy and the United Mine Workers of America have reached an agreement. The company will pay $75 million into the health fund this year, but will not have to pay $70 million next year.
The fund covers about 12,000 retired Patriot Coal miners, many of whom worked for Peabody Energy. Peabody spun off Patriot in 2007.
The company agreed to pay about $310 million into the health fund in 2013, as part of Patriot Coal’s first bankruptcy. This year Patriot filed for bankruptcy a second time, and Peabody sought to be released from its remaining $145 million obligation.
In a statement, UMWA President Cecil Roberts said the agreement will provide some security for retirees, their dependents and widows.
"These retirees did everything asked of them, and now through no fault of their own find their health care benefits in jeopardy," Roberts said. "This agreement will help, but is by no means a permanent fix to this problem."
