Tuesday, December 2, 2014

"Walter Energy Stock Plummets After BB&T Capital Predicts 2015 Bankruptcy Filing" $WLT

"The firm issued a research note Tuesday with predictions on the coal sector for 2015, and one of the predictions was Walter Energy would file for bankruptcy next year."
This is what BB&T had to say:
"WLT files for bankruptcy. We don’t see any way around it, particularly given our view met prices get worse before they get better. At the current $119/mt met price, we think WLT has enough cash to get through 2015. With that said, we think the Board will reach the conclusion before that point that the met market won't improve enough over the next couple of years to save the company from needing to restructure. We think WLT will eventually emerge with a much more sustainable business model (i.e. far less interest expense), anchored by two of the best met coal mines in the world."

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