Seminole will acquire Walter Energy’s assets in West Virginia, including the Gauley Eagle and Maple properties, as well as Walter Coke and Taft in Alabama. As part of the acquisition, Seminole will assume liabilities related to the assets it is acquiring.
“The asset sale agreements we have negotiated during Walter Energy’s restructuring process — first with members of our senior lender group and now with ERP and VCLF — together represent the best possible outcome for Walter Energy, its creditors, employees and other stakeholders under the very difficult circumstances we have faced in our industry,” said Walt Scheller, chief executive officer. “Over the last several months, we have worked hard to build a path forward for our operations, while also ensuring the company’s environmental obligations are appropriately addressed to the highest standards. VCLF has established a strong track record in this area, and we are very pleased to be partnering with them in this transaction.”
The agreement was filed on February 1 with the Bankruptcy Court for the Northern District of Alabama in connection with a proposed, court-approved sale process. On July 15, Walter Energy and its U.S. subsidiaries filed for relief under Chapter 11 of the U.S. Bankruptcy Code in the Bankruptcy Court for the Northern District of Alabama.
PJT Partners is serving as financial advisor and Paul, Weiss, Rifkind, Wharton & Garrison LLP and Bradley Arant Boult Cummings LLP are serving as legal advisors to Walter Energy.