I don't think so. The PR regarding the financing package is great news as it temporarily gets the company out of default with their creditors & allows them time to perform. But apparently it wasn't enough to spook the shorts or give the market confidence that a BK still was not forthcoming.
I held the stock at a much higher basis, but decided not to bail and dollar cost average my position as the stock dropped. Because... WLBA's creditors gave covenant waivers regarding the going concern assumptions in the 2017 YE FS. This gave hope that they may also entertain troubled debt restructuring and just maybe WLBA would not have to Chapter. The new financing package was a big step, but it contains post petition disclaimers and prior PR's did reference the company soliciting financing in conjunction with a BK reorg plan. In my opinion, We need more evidence of stabilization to really pop.
WLBA has positive EBITDA, meaning there's cash flow for creditors to work with, but they're walking a tight rope with limited capital. Thermal coal is a tough market because of the low price of natural gas. Met coal on the other hand could be lucrative with steel demand which has a lot of moving parts... Increased military spending, expected infrastructure bills, enforcement of tariffs, etc. This is one of the most entertaining lotto plays I've ever seen OTC. Legit company, heavily shorted on the NASDAQ, was on the brink of bankruptcy... If they can improve performance and not Chapter, it could be a home run. If they file, our shares are wallpaper. We'll see...
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