$WLT,...Bloomberg: Walter Energy debt talks accelerate with bankruptcy plan
Walter Energy’s (WLT -6.7%) senior creditors are entering confidential talks with the company to reorganize it in bankruptcy court and hand ownership to the lenders, Bloomberg reports.
The group, which owns WLT’s first-lien bonds and loans, reportedly will submit a draft plan to the coal miner that calls for converting their debt into equity.
The senior lenders are said to want WLT to file for bankruptcy by July 15, when the grace period on a $19M interest payment due to junior bondholders ends.
WLT has been discussing a reorganization since April as it struggles with a $3.1B debt load and the coal downturn.
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