- Walter Energy (NYSE:WLT) appears headed to a January bankruptcy auction, as senior lenders offer to cancel or take on $1.25B of the company’s debts to set a floor price for the competition, WSJ reports.
- WLT has abandoned a turnaround effort and resorted to a sale because its "financial condition is continuing to deteriorate and unexpected operational difficulties have exacerbated the situation," court papers say; WLT’s deals with unions are not part of the proposed senior lender buyout package.
- The proposed sale plan replaces a debt-for-equity swap that fell apart, which had threatened to wipe out junior creditors and put jobs and retirees in jeopardy.