Bankrupt Coal Company Auction Draws No Bids
BILLINGS, Mont. (AP) — An auction of assets from a bankrupt U.S. coal company has been canceled after no new offers were submitted for its mines and other holdings.
Colorado-based Westmoreland Coal Company said in a court filing that with no other bids received, the company has selected as the successful bidder a group of creditors who had earlier submitted an offer.
Whether the creditors accept Westmoreland's assets as payment could hinge on whether the company can separate them from its pension and retirement obligations to its employees.
A Feb. 4 hearing is scheduled in the matter in U.S. Bankruptcy Court in Texas.
Westmoreland operates mines across the U.S. and Canada. In October it became the fourth major U.S. coal company to file for bankruptcy amid declining demand for the fuel.