The group, which was not formally named by company officials, has placed cash consideration of $5.4 million and a $1.25 billion credit bid on the table. The agreement has already been filed with the U.S. Bankruptcy Court for the Northern District of Alabama, where the producer is currently working through its Chapter 11.

The proverbial ball is now in Walter Energy’s court, and it appears a sale may be coming; according to a Wall Street Journal report the same day, the company’s lawyers said it has abandoned a turnaround effort in favor of a sale because Walter’s “financial condition is continuing to deteriorate and unexpected operational difficulties have exacerbated the situation.”

The Alabama-based company is now asking for a judge to give approval for an early January bid submission deadline and January 7 auction.

“An asset sale was one of the possible means of achieving the restructuring sought by Walter Energy when it filed for Chapter 11 protection in July,” Walter officials said in its statement confirming the APA, adding that it is subject to “higher or otherwise better offers” as well as other conditions.

“Electing this path now will allow the company to continue moving forward expeditiously with its restructuring, and represents what the company believes is the best path forward in a highly challenging industry environment.”

Walter initially filed for bankruptcy on July 15. Its Canadian and U.K. assets are not included in the bankruptcy or in the new APA.