The on-again, off-again Walter Energy bankruptcy sale is off again once more.
The Birmingham, Alabama-based coal producer late Friday filed papers with the Unites States Bankruptcy Court Northern District of Alabama, Southern Division, postponing its auction for Central Appalachian and Southern Appalachian assets the fifth time.
Sources close to the matter on Monday confirmed the postponement. Calls to Walter seeking comment were not returned.
In November, Walter originally scheduled its bankruptcy auction for nine groups of CAPP and SAPP assets for January 7. But as the date approached, the auction was delayed again and again, until a postponement filed January 19 set Monday as the new date.
In the latest rescheduling filed Friday, Walter did not list a new date for the auction even though a hearing to approve the sale has been rescheduled.
The company stated in court papers that after reviewing bids, Walter's debtors determined the auction would be "adjourned until a date to be determined." It also stated that a hearing to approve the sale of the assets has been set for February 3.
The court earlier this month approved the sale of Walter's core metallurgical coal assets in Alabama, including Mine No. 4 and Mine No. 7, to its stalking-house bidder, Coal Acquisition LLC, an entity made up of the producer's senior lenders.
Layoffs were made at both Mine No. 4 and Mine No. 7 in late 2015 as Walter said it was reducing production in a tough market. According to US Mine Safety and Health Administration data, Mine No. 4 produced 2.4 million st in 2015, down from 2.7 million st the year before, and Mine No. 7 produced 3 million st in 2015, down from 5.2 million in 2014.
Production combined for the met mines in Q4 2015 was down 63% compared to Q4 2014, falling to 679,000 st from 1.8 million st.
Coal Acquisition also acquired four other groups of assets up for sale that included the Blue Creek mine in Alabama and non-mining property interests in Alabama, Louisiana and West Virginia. The four asset groups still up for sale through the bankruptcy auction include Maple Coal's and Atlantic Leaseco's mines in West Virginia, Taft Coal's mines in Alabama, Jim Walter Resources' mines and preparation plant in Alabama and Walter Coke in Alabama.
WALTER REPORTS $72M NET LOSS IN DECEMBER
In court papers filed last week, Walter reported its US operations posted a net loss of almost $72.3 million in December.
Sales for the month totaled $36.2 million, with total revenues of $38.7 million. But that cash flow was offset by $79.7 million in costs and expenses, including $40.9 million in operation losses and $7.4 million in asset impairments, among other losses related to taxes and interest expenses.
Walter filed for Chapter 11 bankruptcy in July with hopes to reorganize, but in November announced it had given up on restructuring its US operations because of poor market conditions and was looking to sell its coal assets.
In December, Walter announced it would also be selling its remaining coal assets worldwide after obtaining protection under the Companies' Creditors Arrangement Act for Walter Energy Canada Holdings and idling all operations in Canada and the United Kingdom.
