Bankruptcy Judge Tamara Mitchell granted approval for coal producer Walter Energy Inc. to reject its labor agreements and end retiree benefits, which the bankrupt U.S. company said was needed in order to sell off its operations, given the industry's dire straits, Reuters reported today. Judge Mitchell said in an opinion published on Monday that Walter's situation would go from bad to worse if it had to maintain its collective bargaining agreements and retiree benefits. "The court finds credible that no potential buyers have an interest in assuming such obligations, let alone assuming such obligations and investing such new capital," Judge Mitchell said in her opinion. The company has in place a purchase agreement with Coal Acquisition LLC, which is made up of Walter's lenders. An auction is scheduled for Jan. 5, and Mitchell will be asked to approve the auction results at a sale hearing on Jan. 6.
