IEEFA Research

IEEFA Update: How Will Westmoreland Coal’s Deepening Spiral End?

IEEFA Update: How Will Westmoreland Coal’s Deepening Spiral End?

Disappearing Market Capitalization and Unsustainable Debt

We’ve just published a research brief of interest to any person, community, business, or investor with ties to Westmoreland Coal Co. The brief—“Westmoreland Coal Is in Trouble”—lays out how the company, which produces coal for electricity generation, is hobbled by debt, is losing customers, has suffered a catastrophic drop in stock price, and appears to […]

February 16, 2018 Read More →

More News and Commentary

Decline in U.S. demand hitting domestic thermal coal miners hard

S&P Global Market Intelligence ($): Major U.S. coal producers that bit the bullet early and filed for bankruptcy a few years ago are now enjoying the benefits of improved coal markets and clean balance sheets, but the companies that avoided that first wave of reorganizations now find themselves particularly stressed by declining domestic demand. Two […]

March 21, 2019 Read More →

Out of bankruptcy, Westmoreland Coal becomes Westmoreland Mining

Power Magazine: Westmoreland Coal Co., the nation’s largest independent coal producer, announced March 15 that it has emerged from Chapter 11 bankruptcy and will operate as a new, privately held company. The company, headquartered in Englewood, Colorado, near Denver, said its assets, including three mines in Montana, are now owned and operated by Westmoreland Mining […]

March 18, 2019 Read More →

Judge okays Westmoreland plan to come out of bankruptcy

Colorado Public Radio: One of the oldest coal companies in the U.S. said Monday it expects to emerge from bankruptcy in coming weeks after a judge approved a plan that will keep its mines running in Montana, New Mexico and several other states and Canadian provinces. Westmoreland Coal Co. will keep its name but get […]

March 6, 2019 Read More →

It’s official: Bankrupt Westmoreland’s Kemmerer mine sold, retiree benefits eliminated

Casper Star Tribune: A Virginia businessman will be the newest coal player in Wyoming after being the sole bidder for a bankrupt firm’s coal mine in Lincoln County, according to documents filed in bankruptcy court in southern Texas on Tuesday. Westmoreland Coal Company’s Kemmerer mine will be sold to former health care executive Tom Clarke’s […]

February 21, 2019 Read More →

Bankruptcy judge’s ruling likely to eliminate retiree benefits as part of Westmoreland’s Kemmerer mine sale

Casper Star Tribune: Retired coal miners from Kemmerer likely lost their company health benefits Friday when a judge decided that Westmoreland Coal Co. could eliminate retirement health care and a union contract in order to sell the Kemmerer coal mine to a Virginia businessman. Judge David R. Jones of the U.S. Bankruptcy Court in Houston […]

February 19, 2019 Read More →

Westmoreland bankruptcy raises questions about future of Colstrip coal plant

Bloomberg Environment: One of the largest power plants in the West could be at risk if Westmoreland Coal raises the price of coal as the utility’s sole supplier as part of its bankruptcy proceedings. Nearly three-quarters of the Colstrip Power Plant’s electricity production could grind to a halt, its owners say, if Westmoreland’s potential new […]

February 12, 2019 Read More →

No bidders for bankrupt Westmoreland’s core coal mine assets

S&P Global Market Intelligence ($): Westmoreland Coal Co.’s creditors are slated to take over its core assets after the company did not secure another qualified bid for the mines. The creditors served as a stalking horse bidder during Westmoreland’s Chapter 11 proceedings and will acquire the coal producer’s core assets, including its Canadian business and […]

January 23, 2019 Read More →

U.S. coal companies continue to lose market value

S&P Global Market Intelligence ($): The 12 largest publicly traded U.S. coal producers lost 16.6% of their total market value since September 2018, with just one seeing an increase during the period. The companies’ total market capitalization was $12.68 billion on Sept. 27, 2018, and $10.58 billion as of Jan. 8, 2019, according to data […]

January 11, 2019 Read More →

Reclamation costs a key factor in Westmoreland’s restructuring efforts, experts say

S&P Global Market Intelligence ($): Analysts said they were not surprised by Westmoreland Coal Co.’s plan to sell one Ohio mine and pay a holding company to take several others because the operations have high reclamation costs and shrinking profitability. The coal producer, which sought Chapter 11 bankruptcy protection in October 2018, presented the bankruptcy […]

January 7, 2019 Read More →

Union, trustee question Westmoreland bankruptcy plan

S&P Global Market Intelligence ($): A bankruptcy court should deny Westmoreland Coal Co.’s request to employ management consulting firm McKinsey Recovery & Transformation Services U.S. LLC during its Chapter 11 proceedings because McKinsey “patently lacks disinterestedness,” a U.S. trustee recommended. Henry Hobbs Jr., the acting U.S. trustee for the southern and western districts of Texas, […]

December 18, 2018 Read More →