Seminole Coal Resources, a division of ERP Compliant Fuels and the Virginia Conservation Legacy Fund, has completed its purchase of bankrupt Walter Energy's Central Appalachian and Southern Appalachian coal and coke assets, the companies said.
In a statement late Friday, Walter said the sale for $1 and the assumption of liabilities tied to the properties has closed. The companies initially announced the deal February 1.
Seminole now owns Maple Coal and Atlantic Leaseco, which contains the Gauley Eagle complex, Eagle Mine and Sycamore Mine with related leases, in West Virginia; Taft Coal's Choctaw, Robbins Road, Reid School, Blue Ridge and Gayosa mines in Alabama; Jim Walter Resources' No. 3 Mine, North River mine and Kellerman preparation plant in Alabama; and Walter Coke in Alabama.
With the Walter acquisition, VCLF now operates one coke plant and four underground mines, including three longwalls, with expected production of over 10 million st of thermal and metallurgical coal annually.
Walter has yet to close on the sale of its only remaining US assets to Coal Acquisition LLC, an entity made up of the producer's senior lenders. The bankruptcy court in January approved the sale of those "core" metallurgical assets in Alabama, which include Mine No. 4 and Mine No. 7, to the lenders' group for $5.4 million in cash, a $1.25 billion credit bid of existing indebtedness and the assumption of certain liabilities.
Walter said in the release the sale to Coal Acquisition is "expected to close in the near future."
