Walter Energy (OTC Pink: WLTG) on April 1 announced the close of the previously-disclosed sale of substantially all of its core assets, made up of Alabama coal assets, to Warrior Met Coal LLC (formerly known as Coal Acquisition LLC), an entity owned by Walter Energy’s first lien creditors.
On Jan. 8, the U.S. Bankruptcy Court for the Northern District of Alabama approved the sale pursuant to section 363 of the Bankruptcy Code and entry into an asset purchase agreement setting forth the terms of the sale transaction, after a court-supervised auction process. The asset package includes the longwall operations of Jim Walter Resources, which have been shorn of union liabilities by the bankruptcy court.
With the close of this transaction, Walter Energy has transferred ownership of virtually all of its U.S. operating assets to third parties under the court-supervised sale process. Earlier this year it completed the sale of its non-core U.S. assets to Seminole Coal Resources LLC, ERP Compliant Coke LLC and ERP Environmental Fund Inc., all affiliates of ERP Compliant Fuels LLC and Virginia Conservation Legacy Fund Inc.
Walter Energy’s remaining assets include Walter Energy Canada Holdings Inc., a wholly-owned subsidiary with assets in both Canada and the UK. Those assets are undergoing their own bankruptcy sale process.