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Walter Energy enters agreement with Seminole Coal to sell U.S. assets
By Mark Reccek
Bethlehem, Pa., Feb. 1 – Walter Energy, Inc. on Monday said it entered into an asset purchase agreement with Seminole Coal Resources LLC, ERP Compliant Coke LLC and ERP Environmental Fund, Inc., an affiliate of Virginia Conservation Legacy Fund, Inc. (VCLF), for the sale of its remaining assets in the United States, according to a news release.
Specifically, Seminole will acquire Walter Energy’s assets in West Virginia, including the Gauley Eagle and Maple properties, as well as Walter Coke and Taft in Alabama, the release said. Also, Seminole will assume liabilities related to acquired assets.
According to an 8-K filed with the Securities and Exchange Commission, the transaction is required to close by Feb. 29, subject to an extension of up to 30 days under certain circumstances.
The 8-K also indicated the sale will be subject to proposed bidding procedures and the receipt of the highest or otherwise best bid at the proposed auction.
“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,” Walt Scheller, chief executive officer, said in the release.
According to the release, Canadian or United Kingdom subsidiary assets are excluded from the agreement.
The agreement was filed on Monday with the U.S. Bankruptcy Court for the Northern District of Alabama.
Walter Energy, a metallurgical coal producer based in Birmingham, Ala., filed for bankruptcy on July 15, 2015. The Chapter 11 case number is 15-02741.
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