Walter Energy Inc. is negotiating a debt restructuring with senior lenders that may put the unprofitable coal producer into bankruptcy as soon as this month, Bloomberg News reported on Friday. The coal miner, which rejected earlier proposals sent by creditors, is expected to send a revised plan to first-lien lenders, including Blackstone Group LP’s credit arm, Franklin Resources Inc. and Cyrus Capital Partners, that includes a request for a debtor-in-possession loan that would allow the company to operate while in bankruptcy. Walter, which last generated an annual profit in 2011, has been in talks with lenders for almost two months on a reorganization as it struggles amid the worst downturn for coal in decades. Prices of metallurgical coal have been undermined by excess supply and slowing demand from China.
