What a Missouri Coal Company’s Bankruptcy Could Mean for Miners

free case evaluation
100% Secure and Confidential
Rated 5 Stars
5.0 Google Rated
What a Missouri Coal Company’s Bankruptcy Could Mean for Miners

Helping Injured People Get Results

$7M

Product Liability

$31M

Medical Malpractice

$5.75M

Product Liability

i-coalminingaccidents

Peabody Energy, a St. Louis- based company that owns some of the largest mines in the country, is the latest major coal company to file for Chapter 11 bankruptcy. The U.S. mining industry has been declining for years now, helped along by falling natural gas prices and an increasing environmental protection effort nationwide. However, many wonder what this Missouri company’s bankruptcy could mean for miners, particularly those who suffer from black lung disease and may be seeking compensation.

Unlike other bankruptcy plans, the goal of Chapter 11 bankruptcy is reorganization instead of liquidation or the simple discharge of debts. Peabody Energy will now be required to submit a reorganization plan to the courts which, if approved, will allow the company to pay off some of its outstanding debts, reexamine its finances and then continue operations. However, previous bankruptcy cases involving other big coal mining companies have proven problematic for former employees seeking workers’ compensation benefits.

How Could Peabody’s Bankruptcy Affect Miners with Black Lung Disease?

Black lung disease is one of the most common work injuries coal miners develop. It is a painful and often deadly respiratory disease that can make breathing difficult and can limit the victim’s ability to work. The federal government provides protection for miners who develop black lung disease and requires all mining companies to have insurance specifically to cover these kinds of workers’ compensation claims. However, when a company files for bankruptcy, it is not always clear who is liable to pay these claims.

One good example of this problem is the recent bankruptcy of Patriot Coal, which filed for Chapter 11 in May of 2015 (its second Chapter 11 claim in eight years). As part of the reorganization plan, many of its assets were sold to another company. The bankruptcy court ruled that this new company would not be responsible for paying any of the black lung claims that had been filed against Patriot. Then, as the bankruptcy moved forward, Patriot eventually stopped paying those claims, too. What followed was an as-yet unresolved lawsuit against the U.S. Department of Labor, which is responsible for covering claims made against companies that have defaulted in their payments.

This tangle of lawsuits continues to be a headache for the miners involved, and does not bode well for those who are currently seeking compensation for black lung complications from Peabody. The main reason is that Patriot was created by Peabody as a spin-off company in 2007. Depending on how Peabody attempts to restructure itself during the course of its current Chapter 11 bankruptcy, former employees could be facing the same kind of uncertainty in their workers’ compensation claims for black lung.

Our nationally recognized law partners have over 50 years’ combined experience helping Illinois and Missouri residents with their workers’ comp and personal injury claims. Contact our offices today to schedule a free consultation. The information provided by Walton Telken, LLC in this Blog is not intended to be legal advice, but merely provides general information related to common legal issues. This Blog, and the information contained within it, is Attorney Advertisement. The choice of a lawyer is an important decision and should not be based solely upon advertisements. Past results afford no guarantee of future results. Every case is different and must be judged on its own merits.

Awards & Recognition

We’re a Midwest-based law firm, small by choice, with big impact. At Walton Telken, our mission is simple: achieve the best possible outcomes for each of our clients. Powered by our passion for victims’ rights and 150 years of combined legal experience, we work hard towards this goal every day—and we have the track record to prove it.

Free Initial Consultations.
No Fee Unless We Win.

We’re here to help recover maximum monetary damages to compensate you for your physical, financial and emotional losses. The personal injury lawyers at our firm understand your concerns and are committed to responding to your needs with strong advocacy and legal counsel. Contact our law firm today to schedule a free initial consultation to discuss your personal injury or work-related injury claim at one of our office locations in Illinois or Missouri.

At Walton Telken, trial practice is core to our DNA. We’re unafraid to fight on your behalf aggressively to ensure you recover the monetary damages you deserve.

100% Secure and Confidential

Our Locations

Edwardsville, IL

241 N Main St , Edwardsville IL 62025
618-272-2284

St. Louis, MO (By Appointment Only)

214 N Clay Ave Suite 140 , St. Louis MO 63122
314-441-7133

Available 24/7

phone icon844-307-7349

"*" indicates required fields

Our award-winning attorneys will contact you for a free case evaluation.
This field is for validation purposes and should be left unchanged.
100% Secure and Confidential