Walter Energy to make interest payments

OREANDA-NEWS. Walter Energy will make interest payments due on some of its loans on 15 May and is continuing discussions on restructuring its debt.

The company is nearing the end of a 30-day grace period to pay interest on senior secured notes due in 2019 and 2021. The payments were initially due on 15 April.

Walter denied that it has a problem with liquidity. The company had \$435mn in cash and investments as of 31 March and plans to meet sales commitments as well as other obligations, it said late yesterday. But the company will talk to debtholders "to explore alternatives to recapitalize its balance sheet in light of what has been a challenging metallurgical coal pricing environment."

Metallurgical coal export prices plunged again this week. The industry standard low-volatile hard coking coal fob Australia for prompt 90-day delivery has plunged by 25pc since the start of the year, ending today at \$84/metric tonne. US coking coal prices have fallen less dramatically but also are down. They were assessed this week at \$98/t for low-volatile coal, \$100.50/t for high-volatile type A coal and \$98.50/t for high-volatile B coal, compared with \$109.80/t, \$111.25/t and \$106/t, respectively, at the start of the year.