Westmoreland Coal in Chapter 11, Again.
Westmoreland Coal Company filed for chapter 11, citing debt upwards of $1 billion. This marks yet another major coal company to file, with Peabody Energy Corp, Arch Coal and Alpha Natural Resources also having filed within the last three years. Westmoreland’s history goes back over 160 years, and it has over 1,700 employees.
A major factor that led Westmoreland to filing chapter 11 is the declining demand for coal that has been partially attributed to inexpensive natural gas.
This is not Westmoreland’s first visit to a bankruptcy court: the company filed for chapter 11 in 1994 and 1996, but it restructured both times. This time around, Westmoreland is looking to sell substantially all assets at auction, with the secured lenders acting as the stalking horse bidder.
The case will be funded by a $110 million debtor-in-possession loan from the secured lenders.
Read Chief Restructuring Officer Jeffrey Stein’s declaration in support of the first day motions here.
View the petition here.
ONE Aviation Flies Into Bankruptcy Court
Aircraft service, remanufacturing and sales company ONE Aviation filed for chapter 11 with affiliates Eclipse Aerospace and Kestrel Aircraft. ONE Aviation is seeking to use chapter 11 to effectuate the prepackaged plan of reorganization outlined by a restructuring support agreement with prepetition lender Citiking International. The proposed plan will hand over the reorganized company’s Class A common stock and preferred stock to Citiking and provide noteholders with a share of Class B common stock.
Citiking has agreed to provide a $17 million loan to fund the company during the case. As of the filing, the company listed $198.8 million of total debt.
Read Chairman Michael Wyse’s declaration in support of the first day motions here.
View the petition
