Westmoreland Coal Co. announced that its Chapter 11 plan became effective this week and that it has emerged from Chapter 11 as a privately held company owned and operated by a group of its former creditors. The United States Bankruptcy Court for the Southern District of Texas, Houston Division approved the Plan on March 2.
Through its plan of reorganization, the company prompted the sale of substantially all of their assets to a new entity, Westmoreland Mining LLC, created and controlled by the company’s former first lien creditors that enabled the business to emerge from the restructuring process with enhanced financial flexibility, a stronger balance sheet and a renewed ability to focus on providing reliable and affordable energy products, the company said.
Post-bankruptcy, Westmoreland Mining’s assets include five operating mines in each of Canada and the U.S. supplying regional power producers, and one export mine in Canada. Westmoreland Mining’s assets will remain in operation under the same local leadership, and the business will continue operating in the normal course, preserving over a thousand jobs in the U.S. and Canada.
Westmoreland Resource Partners LP, which owns the Kemmerer mine, remains in Chapter 11 and its mining assets have not been acquired by Westmoreland Mining.
Following the planned retirement of Michael Hutchinson from the company at the conclusion of the restructuring process, Martin Purvis will take on the role of CEO and David Stetson will serve as chairman for Westmoreland Mining.