The CCAA was granted following a December 7 Initial Order (IO) the producer filed with the Supreme Court of British Columbia.
The protection is somewhat equivalent to pre-bankruptcy in the U.S.; it is intended to help a company restructure its finances to avoid bankruptcy while still allowing for creditor payments.
The move is completely separate from Walter Energy’s U.S. Chapter 11 filing. Officials confirmed in July when the case was initially filed that only domestic assets, not any Canada or U.K. assets, were included in its reorganization.
“Under the CCAA proceedings, it is expected that Walter Canada’s operations will continue uninterrupted in the ordinary course of business,” Walter Canada officials said, adding that all of the mines had been idled as a result of market conditions. “Obligations incurred after the filing date, including obligations to employees and key suppliers of goods and services, will be paid on an ongoing basis.”
Walter Canada’s operations consist of the Wolverine (met), Brule (PCI) and Willow Creek (met) surface operations.
Walter Energy’s U.K. portfolio includes the Aberpergwm anthracite mine, an underground development mine near Neath, South Wales.