Power plant closures are turning Westmoreland’s minemouth assets into liabilities

first_img FacebookTwitterLinkedInEmailPrint分享S&P Global Market Intelligence ($):Two lawyers who specialize in Chapter 11 restructuring see differing paths for Westmoreland Coal Co.: shedding debt and coming back as a leaner company with lenders in control or breaking up by selling most of its assets.Pending bankruptcy court approval, the company plans to sell its core assets, which includes its San Juan operations in New Mexico as well as its Rosebud mine in Montana, to the highest bidder. Its lenders would act as a stalking horse bidder and take the assets in exchange for the company’s debt if there are no higher offers.Steven Abramowitz, a partner with the law firm Vinson & Elkins LLP who focuses on restructuring and bankruptcy, said the lenders usually buy the assets in these sorts of cases, noting that the lenders probably know there’s little chance of another entity paying more than the value of Westmoreland’s debt.Westmoreland also intends to sell some of its noncore assets, which include the Absaloka and Savage mines in Montana; the Beulah mine in North Dakota; the Buckingham mine in Ohio; the Haystack mine in Wyoming; and the Jewett mine in Texas.Peter Morgan, senior attorney with the Sierra Club focusing on issues related to coal, including bankruptcies, said the company’s bankruptcy is taking “a very different form” than the recent Chapter 11 proceedings of other coal producers, such as Peabody Energy Corp., Alpha Natural Resources Inc. and Arch Coal Inc. While those companies’ restructuring plans helped them shed some debt while continuing normal operations throughout their proceedings, he said, “Westmoreland really seems like it’s just being split up and sold for parts.”Morgan questioned the value of the company’s core assets — minemouth operations that service coal-fired power plants with units that are scheduled to retire within a decade. Rosebud sells its coal to Colstrip, a plant that will shutter its two older units by 2022 and may close down the remaining two units in 2027. The San Juan mine sells to the San Juan plant, which is slated to retire after its existing coal contract expires in 2022. “When your crown jewels, when your most valuable assets are mines that are inextricably tied to power plants that are in the process of closing,” Morgan said, “that suggests that there’s very little value left in that company.”More ($): With few potential buyers for its mines, Westmoreland could be ‘sold for parts Power plant closures are turning Westmoreland’s minemouth assets into liabilitieslast_img read more

Gambling.com welcomes Matti Metsola as first Head of Legal

first_imgShare Mace launches EQ Connect to solve the industry’s ‘single view’ conundrum on identifying risk  August 10, 2020 Submit GiG lauds its ‘B2B makeover’ delivering Q2 growth August 11, 2020 Share Related Articles StumbleUpon Gambling.com maintains momentum against COVID-19 impacts August 19, 2020 Digital marketing service providers Gambling.com Group has announced the strengthening of its team, through the appointment of Matti Metsola for the newly created role of Head of Legal.Metsola, who joins the teams from Gaming Innovation Group (GiG) where he held position of GiG’s first General Counsel, commented: “The affiliate sector is among the most dynamic parts of the online gaming industry right now with vast opportunities coming along thick and fast, including the prospect of a large, legal sports betting market in the United States. “With its visionary leadership Gambling.com Group is in prime position to capitalise on those developments, and I’m thrilled to become part of it.”Boasting in excess of ten years of experience, a selection of Metsola’s previous experience has encompassed being legal practitioner and in-house counsel for a number of high profile companies, including Unibet (now Kindred Group) and Mr Green, in addition to GiG.Charles Gillespie, CEO of Gambling.com Group, stated: “We are happy to see Matti join the team and bring with him a wealth of experience from managing demanding regulatory projects in the industry.”last_img read more