An article from Seeking Alpha suggested that although Walter Energy (NYSE:WLT) might need to undertake additional production cuts. The author stated that tough industry conditions would be likely to weigh on the company’s liquidity position.
As quoted in the publication:
WLT is a pure-met coal play and is among the leading met coal companies of the world. The company has been struggling to deliver a healthy financial performance due to weak met coal markets; met coal markets are oversupplied, which remains a hurdle in a price recovery. Due to weak met coal prices, I believe the Coal Industry, including WLT, needs to undertake additional production cuts, which will portend well for the industry. Also, the tough industry conditions are likely to weigh on the liquidity position of the company, and I believe an amendment to credit facilities by WLT will continue if met coal markets remain weak in future.