First lien creditors acquire Westmoreland assets

Burdened with a debt level nearly twice the value of its assets and unsuccessful in soliciting any bids for its operations, Westmoreland Coal Company will sell most of its assets to its first lien creditors. The bankruptcy court has approved the restructuring plan. Most of the company’s term loan, bridge loan and senior secured note holders have also agreed to the plan. The company’s once-promising risk reduction strategy of focusing on mine-mouth operations and long-term, cost-plus contracts fell victim to an exciting US energy transition from coal to gas and renewables.