https://www.engineeringnews.co.za

Walter Energy’s senior lenders form company to buy Alabama assets

Walter Energy’s senior lenders form company to buy Alabama assets

Photo by Duane Daws

6th November 2015

By: Henry Lazenby

Creamer Media Deputy Editor: North America

  

Font size: - +

TORONTO (miningweekly.com) – Bankrupt coal company Walter Energy has agreed to sell its Alabama assets to a new company formed by its senior lenders.

Under the terms of the asset purchase agreement, Walter would receive $5.4-million in cash. The agreement also contemplated a $1.25-billion credit bid of existing indebtedness and the assumption of certain liabilities by the third party. 

Walter had filed the agreement with the Bankruptcy Court for the Northern District of Alabama, as part of the court-supervised auction process under the Bankruptcy Code.  Therefore, the purchase agreement was subject to higher, or better offers, besides other conditions.

The company advised that an asset sale was one of the possible means of achieving the restructuring it sought when it filed for Chapter 11 protection in July. 

Walter expected the sale of its Alabama assets to speed the restructuring process along what it believed to be the best path forward in a highly challenging industry environment.

Walter Energy's non-US operations, including those in Canada and the UK, were not included in the bankruptcy proceedings.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

Array

Showroom

Aqs image
AQS Liquid Transfer

AxFlow AQS Liquid Transfer (Pty) Ltd is an Importer and Distributor of Pumps in Southern Africa

VISIT SHOWROOM 
WearCheck
WearCheck

Leading condition monitoring specialists, WearCheck, help boost machinery lifespan and reduce catastrophic component failure through the scientific...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.259 0.315s - 156pq - 2rq
Subscribe Now