The Day-Traders Wet Dream of the Week: Walter Energy (WLT)

Bloomberg: Walter Energy may file for bankruptcy.

It was reported Friday evening that Walter Energy Inc. is negotiating a debt restructuring plan with its major creditors that may allow the Alabama-based coal company to file for bankruptcy reorganization this month.

Hoover-based Walter Energy owns Jim Walter Resources, which operates underground coal mines in Tuscaloosa County and is one of the county's largest employers with around 1,000 workers here. It also has surface mines and other coal-related facilities in the state plus coal mines in West Virginia, Canada and the United Kingdom.

Bloomberg reported that two people with knowledge of the negotiations said Walter Energy will submit a revised plan to its major lenders requesting for a debtor-in-possession loan that would allow it to operate while in bankruptcy. Bloomberg did not identify the two people familiar with the negotiations.

Bloomberg said spokespersons for Walter Energy and its main lenders declined to comment.

A major drop in demand for coal globally has driven down coal prices and battered the bottom line of coal companies. Publicly traded Walter Energy last reported a profit in 2012.