Was Patriot Coal designed to fail?

Media Outlet: 

In These Times magazine

Patriot Coal, a spinoff of mining giant Peabody, is in bankruptcy proceedings to modify its collective bargaining agreements to reduce its payments to retirees. Patriot's CEO has said the actions are necessary for Patriot to become viable and that the alternative of liquidating Patriot would do far greater damage to employees and retirees. A report by Fox School of Business Assistant Professor for Finance Bruce Rader, titled “Designed to Fail (The Case of Patriot Coal),” calls Peabody's claims into question: "The company’s business model could only make money if coal was priced at or above record high. … From a financial point of view this venture seems to have been created to fail in the long-run unless the most optimistic outcome for eastern coal was obtained."