In a10-Q financial filing with the U.S . Securities and Exchange Commission May 5, Alabama-based Walter Energy said that it was considering voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code if it was not able to make the payment or to restructure its debt.

The operator reported had $3 billion in debt as of March 31, per its most recent earnings release.

While Walter is still not yet out of the woods, on May 7 officials confirmed it would be making its May 15 interest payments in accordance with the indenture agreements with the holders of its 9.5% senior secured notes due in 2019 and also 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,” Walter officials said. “The company will continue to engage in such discussions.”

The miner also noted that it does not currently have a liquidity issue, as it held $435 million in cash and investments as of March 31.

“[We] will continue to deliver high quality met coal to customers and meet its other obligations as it works with its debtholders to address the company’s capital structure.”

In related news, Walter has issued layoff notices to 27 workers at its Willow Creek operation that will be effective June 11. Only 10 workers will remain after the cut. The furlough follows pink slips that it issued to 23 at its Brule mine on April 14. Both are under the umbrella of the Walter Canadian Coal Partnership.