Walter Industries, Inc. (fka WLTGQ)

[Timothy Smith]

Walter Energy (NYSE:WLT) is asking for a bankruptcy court’s approval to end employment agreements with its unions and stop funding retiree benefits so it can move ahead with the sale of its Alabama coal operations, Dow Jones reports.

WLT’s lenders, which plan to acquire the Alabama operations, say they will not be bound by union pacts that seek to hold the successors to their terms; WLT says this should come as no surprise in light of the agreements’ “onerous" terms.

The United Steelworkers union says it will fight the request, but WLT says the coal industry downturn leaves it with little choice.