A federal judge in Texas has approved the sale of Westmoreland Coal Company assets as part of its Chapter 11 bankruptcy proceedings.
According to a press release issued Monday by Westmoreland, the company expects to complete transactions associated with its financial restructuring – which will preserve over a thousand jobs in the U.S. and Canada – and emerge from Chapter 11 protection by the end of the first quarter 2019.
The group of creditors taking over the company have agreed to maintain the coal contract between Westmoreland’s Rosebud mine and the Colstrip power plant through the end of this year.
The six utility owners of Colstrip- Talen Energy, Northwestern Energy, Puget Sound Energy, Portland General Electric, Avista Corp. and PacifiCorp- had asked the Texas bankruptcy judge not to interfere with the current contract.
No deal has been reached for beyond 2020. The Rosebud mine is the sole supplier of coal for Colstrip.
The press release states:
Under the terms of the Plan, Westmoreland’s first lien creditors will take ownership of the Company’s assets, including its Colstrip, Montana; San Juan, New Mexico; and Canada operations (with the exception of Kemmerer mine operations). Westmoreland’s mine assets will remain in operation under new leadership and the Company will continue operating in the normal course, emerging with a strengthened balance sheet and better positioned to succeed.