Walter Energy to Sell Remaining U.S. Assets to Seminole Coal Resources
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Walter Energy, Inc. has signed an asset purchase agreement with Seminole Coal Resources, LLC, ERP Compliant Coke, LLC and ERP Environmental Fund, Inc. (Seminole) all related to ERP Compliant Fuels, LLC, an affiliate of Virginia Conservation Legacy Fund, Inc. (VCLF), for its remaining U.S. assets.
The agreement provides for the acquisition of substantially all of Walter Energy’s remaining U.S. assets after giving effect to its previously-announced agreement with an entity owned by certain of the company’s senior lenders. The assets of the company’s Canadian or United Kingdom subsidiaries are also excluded from the transaction.
Under the terms of the agreement, 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. As part of the acquisition, Seminole will assume liabilities related to the assets it is acquiring.
“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. 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,” said Walt Scheller, chief executive officer of Walter Energy.
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 July 15, 2015, Walter Energy and its U.S. subsidiaries filed for relief under chapter 11 of the U.S. Bankruptcy Code in the Bankruptcy Court for the Northern District of Alabama.
About Walter Energy
Walter Energy is a leading metallurgical coal producer for the global steel industry with strategic access to steel producers in Europe, Asia and South America. The company also produces thermal coal, anthracite, metallurgical coke and coal bed methane gas, with operations in the United States, Canada and the United Kingdom.
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