Walter Energy completes sale of core assets

Bankrupt US coal company, Walter Energy, has announced the close of the sale of most of “substantially all” of its core assets, comprising its Alabama coal assets, to Warrior Met Coal LLC – a company owned by the company’s first lien creditors.

The transaction marks the sale of almost all of Walter’s US operating assets to third parties under the bankruptcy court supervised sales process. Earlier this year, the company completed the sale of its non-core assets to affiliates of ERP Compliant Fuels and Virginia Conservation Legacy Fund.

The company’s remaining assets include Walter Energy Canada Holdings, which owns assets in Canada and South Wales, UK. In December last year, Walter Canada was granted creditor protection under Canada’s Companies’ Creditors Arrangement Act (CCCA).

The CCCA filing allows the continuing of Walter Canada’s operations while the company looks for buyers of its Canadian and British holdings – which were not a part of the company’s Chapter 11 filing in the US. The company’s Canadian and UK mines are currently idled as a result of market conditions.

Edited by Jonathan Rowland.

Read the article online at: https://www.worldcoal.com/coal/01042016/walter-energy-completes-sale-of-core-assets-2016-504/