August 7, 2018 Read More →

Westmoreland Coal reports more losses

S&P Global Market Intelligence ($):

Westmoreland Coal Co. reported a net loss of $191 million, or $9.91 per share, in the second quarter and cautioned investors that its master limited partnership does not have funds to repay a term loan that matures at the end of this year.

Westmoreland Resource Partners’ filings for the fourth quarter of 2017 included a similar “going concern” statement, which constitutes a default under the terms of the loan. The partnership and its lenders have entered into six agreements to waive the default; the most recent expires Sept. 8.

Westmoreland notified investors April 2 that it may seek Chapter 11 bankruptcy protection or be subject to an involuntary petition for bankruptcy and that its auditors have expressed “substantial doubt” about the company’s ability to continue as a going concern.

“The impacts of declining industry conditions and significant debt service requirements on the company’s financial position, results of operations and cash flows gives rise to substantial doubt about our ability to pay our obligations as they come due,” Westmoreland wrote in the Aug. 6 filing.

S&P Global Ratings downgraded Westmoreland from SD to D on June 19 and wrote there was a “virtual certainty” the partnership would default. The coal producer reported $2.14 billion in liabilities as of June 30, compared with $1.46 billion in assets.

More ($): Westmoreland Coal posts $191M loss in Q2, warns of looming default by MLP

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