SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 9, 1994
Westmoreland Coal Company
(Exact name of registrant as specified in its charter)
Delaware 0-752 23-1128670
(State or other (Commission File (IRS Employer
jurisdiction of Number) Identification No.)
incorporation)
700 The Bellevue, 200 South Broad Street
Philadelphia, Pennsylvania 19102
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (215) 545-2500
Item 5. Other Events.
On May 9, 1994 Westmoreland Coal Company reported that it has
temporarily suspended declaration and payment of preferred
dividends.
A press release is attached as an exhibit and incorporated herein
by reference.
Item 7. Exhibits.
Press release dated May 9, 1994.
EXHIBIT INDEX
Sequentially
Exhibit Description of Exhibit Numbered
Number Page
1 Press release dated May 9, 1994. 4
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.
WESTMORELAND COAL COMPANY
Date: May 12, 1994 By: /s/Francis J. Boyle
Francis J. Boyle
Senior Vice President,
Chief Financial Officer
and Treasurer
Westmoreland Bank Negotiations Continue
Philadelphia, PA --May 9, 1994--Wetmoreland Coal Company
(NYSE:WCX) reported today that negotiations continue for
amendments to its long standing credit facilities. These
facilities reach their scheduled maturity dates in July, at which
time their balance will be $46 million. The proposed amendments
are expected to delay the final maturity dates on the affected
obligations to correspond with the closing of the previously
announced sale of obligations to correspond with the closing of
the previously announced sale of Westmoreland Energy, Inc. (WEI)
Westmoreland's independent power and cogeneration subsidiary. The
aggregate purchase price for that sale is expected to be in excess
of $50 million, plus assumption of remaining equity commitments
for projects in construction. A third quarter closing is
anticipated.
Westmoreland announced that as a part of its lender negotiations
it would suspend payment of dividends on its preferred stock.
Christopher K. Seglem, Westmoreland's President and Chief
Executive Officer said, "Although regrettable this is an important
aspect of achieving our objectives with these lenders and further
enhances our cash position. We believe it is in the long term
best interests of our shareholders. We expect to repay our
lenders from the proceeds of the sale of WEI and plan to begin
payment of preferred dividends again at that time."
"We are also continuing the strategic analysis of the rest of
Westmoreland's current array of assets including its coal
properties," Seglem added, "and, although it is still too early to
determine whether we will choose to sell any of them, we are
pleased with the values we have identified. Our overall plan is
on track, to improve cash flows, de-emphasize non-strategic or
underperforming assets, and reposition Westmoreland so that it can
achieve meaningful and sustainable profitability," concluded
Seglem.
