Newspaper article The Tuscaloosa News

Creditors to Purchase Bankrupt Walter Energy

Newspaper article The Tuscaloosa News

Creditors to Purchase Bankrupt Walter Energy

Article excerpt

Walter Energy, the parent company of Jim Walter Resources, said Thursday that it has reached an agreement in which its senior lenders will essentially acquire all its assets in Alabama.

The company filed for Chapter 11 bankruptcy protection on July 15, indicating it had around $3 billion in debt.

Walter Energy's major holdings in the state are the Jim Walter Resources underground coal mines in the Brookwood area as well as the rights unmined coal fields elsewhere in Tuscaloosa and neighboring counties.

Under the agreement, the senior lenders will offer $5.4 million in cash and a $1.25 billion credit bid on Walter Energy's debt.

That will set the bid price for the company's assets in federal bankruptcy court-supervised auction.

The Wall Street Journal reported Thursday that the company will ask the bankruptcy judge to authorize an early January bid deadline for an auction on Jan. 7, which could result in competing bids.

Court filings said Walter Energy's contracts and agreements with the United Mine Workers are not part of the package that the senior lender buyout group would assume if they acquire the company's assets. …

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