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Published on 7/18/2012 in the Prospect News Distressed Debt Daily.

Union seek to move Patriot Coal Chapter 11 case to West Virginia

By Caroline Salls

Pittsburgh, July 18 - The United Mine Workers of America has asked the U.S. Bankruptcy Court for the Southern District of New York to transfer Patriot Coal Corp.'s Chapter 11 bankruptcy case to the U.S. Bankruptcy Court for the Southern District of West Virginia, according to a Wednesday court filing.

The union said Patriot Coal's facilities, employees, retirees and creditors are mostly located in the Southern West Virginia district.

"Debtors' assertion that venue is proper in the Southern District of New York is based on its two recently created subsidiary corporations with unidentified assets, which were apparently created for the sole and express purpose of achieving venue for these cases in SDNY," the union said in the motion.

The United Mine Workers of America said it is the only union representing the employees of Patriot Coal and its subsidiaries.

A hearing is scheduled for Aug. 2.

Patriot Coal, a St. Louis-based miner, producer and seller of thermal coal primarily to electricity generators, filed for bankruptcy on July 9. The Chapter 11 case number is 12-12900.


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