Westmoreland Coal Company – Court Approves Bid Procedures, Sets Auction Date of January 22, 2019

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November 15, 2018 – The Court hearing the Westmoreland Coal Company case approved the Debtor’s request to (i) enter into a stalking horse purchase agreement with an entity formed on behalf of the Debtors’ prepetition secured creditors in respect of the sale of substantially all of the Debtors’ assets and (ii) adopt related bidding procedures [Docket No. 519]. 

The order states, “The WLB Debtors have demonstrated and proven to the satisfaction of this Court that their performance of the obligations related to the Sale Transaction contemplated by the RSA (the “Stalking Horse Bid”), with an entity (the “Stalking Horse Bidder”) to be formed on behalf of holders of the WLB Debtors’ prepetition secured notes due 2022 and prepetition secured term loans due 2020 and performance thereunder is in the best interests of the WLB Debtors, their creditors, and their estates, and that the foregoing represents a prudent exercise of the WLB Debtors’ sound business judgment.” The order proposes the following timeline: (i) a bid deadline of January 15, 2019, (ii) an auction, if required, to be held on January 22, 2019 and (iii) a sale hearing to approve and authorize the sale to be held on February 13, 2019.

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