⁍ Westmoreland Coal Co could shed its Coal Act obligations in its bankruptcy auction of its assets to creditors last year.
⁍ The trustees of the company’s retiree benefit plans had argued that the Coal Act benefits must remain intact.
– The US Court of Appeals for the 5th Circuit has ruled that bankrupt coal companies can modify their obligations to fund benefits for retired employees under the federal Coal Act, the Wall Street Journal reports. According to Westlaw Today, the ruling follows the 4th, 11th, and 5th circuits’ similar decisions in the case of Westmoreland Coal Co., which filed for bankruptcy last year. The company’s trustees argued that the Coal Act benefits must remain intact.
Source: https://www.reuters.com/article/bankrupty-coal/coal-act-obligations-can-be-modified-in-bankruptcy-5th-circuit-idUSL1N2F62PL