Skip to content
Subscriber Only

Walter Energy Reaches Bankruptcy Deal as Coal Prices Drop

Updated on

Walter Energy Co. filed for bankruptcy after reaching a deal that would hand control of the struggling miner to key creditors, in the second corporate failure of the day tied to falling coal and oil prices.

Walter blamed an interest burden of $264 million a year and “crippling” labor costs for its Wednesday filing. Slowing demand from China, the biggest buyer of metallurgical coal, has sent the benchmark price down to $93 a metric ton since July 1, less than half of where it was three years earlier.