Walter Energy Black Warrior trust agreement rejection request OK’d

By Caroline Salls

Pittsburgh, Dec. 30 – Walter Energy, Inc. received court approval to reject three agreements with the Dominion Resources Black Warrior Trust, according to a trust news release.

Specifically, Walter Energy obtained approval from the U.S. Bankruptcy Court for the Northern District of Alabama to reject an overriding royalty conveyance recorded in Tuscaloosa County, Ala., on June 30, 1994, the trust agreement and an administrative services agreement.

The trust said the court stated that agreements may be rejected under section 365 of the Bankruptcy Code if they are “executory.” The court ruled that the Dominion agreements are executory contracts.

The trustee is continuing to evaluate the trust’s legal options, the release said.

The trust said Walter Energy is the parent of Walter Black Warrior Basin LLC.

Walter Energy, a metallurgical coal producer based in Birmingham, Ala., filed for bankruptcy on July 15. The Chapter 11 case number is 15-02741.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.