Walter Energy Inc. has signed an asset purchase agreement with Seminole Coal Resources LLC, ERP Compliant Coke, LLC and ERP Environmental Fund, Inc. all related to ERP Compliant Fuels, LLC (ERP), an affiliate of Virginia Conservation Legacy Fund, Inc. ("VCLF), for its remaining US assets.
Under the terms of the agreement, Seminole will acquire substantially all of the Walter's remaining US assets after giving effect to its previously-announced agreement with an entity owned by certain company senior lenders. It will acquire its West Virginia assets, including the Gauley Eagle and Maple properties, as well as Walter Coke and Taft in Alabama. As part of the acquisition, Seminole will assume liabilities related to the assets it is acquiring.
The company's Canadian and UK subsidiaries assets are also excluded from the transaction.
"The asset sale agreements we have negotiated during Walter Energy's restructuring process—first with members of our senior lender group and now with ERP and VCLF —together represent the best possible outcome for Walter Energy, its creditors, employees and other stakeholders under the very difficult circumstances we have faced in our industry," commentedWalt Scheller, Chief Executive Officer. "Over the last several months, we have worked hard to build a path forward for our operations, while also ensuring the company's environmental obligations are appropriately addressed to the highest standards. VCLF has established a strong track record in this area, and we are very pleased to be partnering with them in this transaction."
The agreement was filed with the Bankruptcy Court for the Northern District of Alabama in connection with a proposed, court-approved sale process under section 363 of the Bankruptcy Code.
On 15 July 2015, Walter Energy and its US subsidiaries filed for relief under chapter 11 of the US Bankruptcy Code in the Bankruptcy Court for the Northern District of Alabama.
Edited from press release by Harleigh Hobbs
Read the article online at: https://www.worldcoal.com/coal/02022016/walter-energy-to-sell-us-coal-assets-152/