Kevin Paprzycki is stepping down as Westmoreland Coal Co.'s CEO, effectively immediately, and will be temporarily replaced by board member Michael Hutchinson while a search is conducted for a permanent replacement.
Paprzycki was appointed CEO in 2015.
"We'd like to thank Kevin for his dedication to Westmoreland during his years serving as Chief Financial Officer and then CEO," said Jan Packwood, chairman of the board, in a Nov. 28 release.
The company has recently faced setbacks, including downgrades and falling share prices.
Its shares plunged from a 52-week high of $19.92 per share in December 2016 to just $1.23 on Nov. 27. As recently as 2014, its shares traded at over $40 but have since trended downward.
S&P Global Ratings lowered its corporate credit rating on the company from CCC+ to CCC and rated its outlook as "negative" after Westmoreland disclosed in an Oct. 31 filing that absent management action, there is a substantial doubt it can stay in compliance with its fixed charge ratio covenants. Failure to stay in compliance without a waiver from lenders could leave the company without access to its revolver and force a default on its $350 million 8.75% notes and its $321.4 million term loan that would become immediately due.
Westmoreland reported a net loss of $19.2 million in the recent quarter.
S&P Global Ratings is owned by S&P Global Inc.