A bankrupt coal company has proposed cutting a variety of medical benefits for retired workers in order to improve its balance sheet.
Alpha Natural Resources filed bankruptcy under chapter 11 in August, hoping to reorganize instead of shut its doors. This week, the company has asked the bankruptcy court for permission to drop some benefits at the end of the year including medical, prescription, surgical and life insurance for non-union retirees. In court documents, the company calls the benefits a "financial burden" that cost Alpha around $2.7 million last year. Alpha says dropping them would "enhance the... prospects of a successful reorganization."
The move could affect over 4,500 retirees and their spouses, including retirees in Wyoming. The company would not comment directly on the court documents.
Alpha is not the first coal company to try drop benefits when financial times get tough. According to a report from ProPublica, coal giant Peabody Energy is trying to get out of paying remaining benefits to around 12,000 retirees.
For Inside Energy, I’m Leigh Paterson.