Walter Energy (NYSE: WLT), a major producer of metallurgical coal, said April 15 that it is working with its debtholders to establish a capital structure that will position the company to weather a “highly competitive and challenging market.”
In the context of these discussions, the company has elected to exercise the 30-day grace period under its indenture agreements with holders of its 9.5% Senior Secured Notes due in 2019 and the 8.5% Senior Notes due in 2021 to extend the timeframe for making the cash interest payments due on April 15.
Walter Energy emphasized that this decision does not reflect a current liquidity issue, as it had approximately $435 million of cash and investments as of March 31. Walter Energy said it will continue to deliver high quality met coal to customers and meet its other obligations as it works with its debtholders to address the company’s capital structure.
Walter Energy is a leading, publicly traded “pure-play” 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. Walter Energy employs approximately 2,700 employees, with operations in the United States (in Alabama and southern West Virginia), Canada and the United Kingdom.