“Contrary to what has been reported, Patriot is not proposing to eliminate healthcare for retirees,” a company spokeswoman told ILN Wednesday.

“Rather, our proposal allows for meaningful healthcare coverage for [United Mine Workers of America] union retirees at a level that Patriot can afford.”

She said Patriot proposed the development of a voluntary employees' beneficiary association, or VEBA trust, which would be administered by the union or the UMWA Health and Retirement Funds.

Additionally, individuals receiving benefits under the Coal Act and Black Lung regulations would still receive their entitlements with “no changes whatsoever”.

“Importantly, we have filed a lawsuit against Peabody Energy to prevent them from using our bankruptcy to reduce their own obligations to retirees whose healthcare they agreed to pay in the spin-off,” she said.

“We are also working with the Creditors' Committee to investigate other potential causes of action against Peabody and other third parties.”

In the meantime, Patriot – which initially filed for Chapter 11 bankruptcy protection in July and is awaiting a hearing on the matter next week in a Missouri US Bankruptcy Court hearing room – stressed it was working to keep its organization intact.

“Patriot is committed to making the changes necessary to emerge as a viable entity for the benefit of all stakeholders, while saving more than 4000 jobs,” the spokeswoman said.

“We need strong support from politicians, regulators and community leaders to help accomplish this goal.”

Earlier this month, the producer proposed giving the UMWA a 35% stake in the reorganized company. That proposal will also be heard next week.

The case is formally known as In re: Patriot Coal Corp., 12-51502, US Bankruptcy Court, Eastern District of Missouri (St. Louis). It was moved from New York City late last year.