Westmoreland Resource Partners LP requested expedited approval from the bankruptcy court to sell its Kemmerer coal mine in Wyoming.
The master limited partnership of now-defunct Westmoreland Coal Co. recently requested a 60-day extension to its reorganization process after a $215 million deal with Thomas Clarke fell through. A May 23 filing in the U.S. Bankruptcy Court for the Southern District of Texas said a credit bid purchaser reached an agreement in principle with an affiliate of Canada-based North American Construction Group Ltd. to operate Kemmerer and its related assets.
The asset purchase agreement includes a credit bid of a portion of the MLP's secured obligations and adequate protection obligations in an amount not less than $300 million. The purchaser must deposit $2.5 million and assume all liabilities of the sellers.
Westmoreland Resource Partners said the credit bid purchaser is in discussions with various sureties to obtain replacement bonding in connection with the permanent transfer of operating permits. The deal remains contingent on the purchaser reaching a deal with the labor union at the mine, obtaining replacement surety bonds and other requirements.
The purchaser is named as Kemmerer Operations LLC, a Delaware limited liability company created by the MLP's secured lenders to hold the assets.
The asset purchase agreement directs notices sent to Kemmerer Operations to the attention of Keith Alessi, a former CEO of Westmoreland Coal. In its bankruptcy reorganization, Westmoreland Coal sold substantially all of its assets to new entity Westmoreland Mining LLC