Coal producer Walter Energy making late interest payments

Walter Energy (NYSE: WLT), a leading producer of metallurgical coal for the global steel industry, on May 7 announced that on May 15 it will be making interest payments 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.

The company previously had exercised the 30-day payment grace period as it worked with its debtholders to explore alternatives to recapitalize its balance sheet in light of what has been a challenging met coal pricing environment. The company said May 7 that it will continue to engage in such discussions.

Walter Energy noted that it does not have a current liquidity issue, as it had approximately $435 million of cash and investments as of March 31, 2015. It will continue to deliver met coal to customers and meet its other obligations as it works with its debtholders to address its capital structure.

Walter Energy has approximately 2,700 employees, with operations in the United States (Alabama and southern West Virginia), western Canada and the United Kingdom.

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.