Bankruptcy Judge Judge Tamara O. Mitchell authorized a settlement that allows Walter Energy Inc. to avoid a showdown with unsecured creditors over the coal-mining company's looming sale, Dow Jones Daily Bankruptcy Review reported today. Judge Mitchell said yesterday that she would approve the deal among Walter, the official committee representing its unsecured creditors and the senior lenders angling to buy Walter's core Alabama mining operations. The deal pledges the unsecured creditors' support for the sale, in which lenders are offering to forgive $1.25 billion of the debt they hold in exchange for Walter's assets, subject to higher bids. The deal also ensures the unsecured creditors wouldn't challenge the claims that form the basis for the lenders' bid.
