Colorado coal company files bankruptcy protection with more than $1 billion in debts

A major Colorado-based coal-mining company with 3,000 employees has filed bankruptcy with $1.4 billion in debts.

Westmoreland Coal Co., described as the sixth-largest coal-mining company in the U.S.,  announced Tuesday it had filed Chapter 11 bankruptcy. The firm, with 19 mines in six states and Canada said it had entered a restructuring agreement with lenders.

Headquartered in Englewood, Westmoreland has mines in New Mexico, Wyoming, Montana and North Dakota but none in Colorado. Company officials indicated they did not expect any layoffs as a result of the bankruptcy protection filing.

A restructuring support agreement with an ad hoc group of lenders will provide that an existing $110 million bridge loan will be refinanced, the company said. That is expected “to provide adequate liquidity” to support its U.S. and Canadian business during the restructuring.