Audley: Walter Energy board 'ill-prepared' to respond to price deterioration

Audley Capital Advisors issued the following statement questioning Walter Energy's argument regarding pricing improvements in the metallurgical coal market. Audley Capital is continuing to urge stockholders to vote the GOLD proxy card for its five nominees for election to the Board of Directors at the company’s upcoming 2013 Annual Meeting of Stockholders on April 25. Julian Treger, Managing Partner of Audley Capital Advisors, said, “Over the past few weeks, including in its most recent letter to stockholders dated April 15, Walter Energy expressed optimism regarding improving conditions for met coal pricing. The company has been pushing a plan that is entirely predicated on the recovery of met coal pricing in the very near future. We believe that demonstrates the lack of sophistication and thoughtful analysis by the current Board...We believe that the current Board is ill-prepared to respond to continued price deterioration. Our analysis suggests that if met coal prices drop further, the company could face a liquidity crisis in the foreseeable future and the Board would be forced to pursue financing that, given what we see as the Board’s lack of sophistication in the capital markets, could severely impact existing stockholders."