Tuesday, July 14, 2015

WSJ: "Walter Energy Plans to File for Bankruptcy" $WLT $WLTG


"The company, which has been battered by a sharp drop in coal prices, plans to swap its senior creditors’ debt for ownership of the company in a chapter 11 restructuring that would largely wipe out junior creditors and reduce labor and pension costs, the people said. [...]

To encourage a quick trip through chapter 11, Walter has agreed on a series of milestones, such as a deadline for winning union concessions, according to people familiar with the plans. Failure to meet those requirements would trigger a court-supervised auction of Walter’s assets at which the senior creditors would lead the bidding, the people said."

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