Colorado coal company files for bankruptcy
October 12, 2018
HELENA, MONT. — One of the oldest coal companies in the U.S. filed for bankruptcy protection Tuesday to deal with more than $1.4 billion in debt amid declining demand for the fuel.
Englewood-based Westmoreland Coal Co. filed for voluntary Chapter 11 protection in U.S. Bankruptcy Court in Houston as part of a restructuring agreement with an unnamed group of lenders.
Westmoreland, which operates mines across the U.S. and Canada, is the fourth major coal company to file for bankruptcy in the past three years, joining Peabody Energy Corp., which owns Twentymile, Arch Coal and Alpha Natural Resources.
Westmoreland officials said in a statement that operations won't be interrupted and there are no expected staff reductions.
"After months of thoughtful and productive conversations with our creditors, we have developed a plan that allows Westmoreland to operate as usual while positioning Westmoreland for long-term success," interim CEO Michael Hutchinson said in the statement.
Coal companies have struggled as demand drops due to a glut of cheap natural gas, the rise of renewable energy sources and plans by some states to reduce or eliminate coal from their energy portfolios.
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Read more at DenverPost.com.