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): April 18, 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 April 18, 1994, Westmoreland Coal Company reported that its
outside auditors, KPMG Peat Marwick, had issued a qualified opinion
on the Company's 1993 financial statements, filed Friday, April 15
with the Securities and Exchange Commission.
A press release describing the transaction is attached as an
exhibit and incorporated herein by reference.
Item 7. Exhibits.
Press release dated April 18, 1994.
EXHIBIT INDEX
Sequentially
Exhibit Description of Exhibit Numbered
Number Page
1 Press release dated April 18, 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: April 18, 1994 By:/s/ Francis J. Boyle
Francis J. Boyle
Senior Vice President,
Chief Financial Officer and Treasurer
Westmoreland Coal Company
Announces Qualified Opinion on Financial Statements
Progress in Strategic Review of Coal Properties
Philadelphia, PA -- April 18, 1994 --Westmoreland Coal Company
(NYSE:WCX) reported today that its outside auditors, KPMG Peat Marwick,
had issued a qualified opinion on the Company's 1993 financial
statements, filed Friday, April 15 with the Securities and Exchange
Commission. The opinion was based on losses associated with the
Company's Eastern coal operations, a working capital deficiency caused
by classification of its revolving credit and insurance company debt as
current liabilities, and violation of various covenants in the Company's
principal credit arrangements. These factors "raise substantial doubt
about [the Company's] ability to continue as a going concern" Peat
Marwick indicated.
Also on Friday but not until after the filing of the 10-K and
auditors' report, Westmoreland reached an agreement in principle to sell
the assets of its independent power and cogeneration subsidiary,
Westmoreland Energy, Inc. (WEI) for an amount in excess of $50 million
plus assumption of equity commitments. That transaction was announced
separately today.
The Company is negotiating with its lenders to amend or
restructure its credit facilities. It is expected that the amendments
and a restructuring to delay the final maturity dates on the affected
obligations will be obtained within 30 days. These obligations have a
current balance of $50 million, with $4 million of scheduled payments in
June 1994 and final maturities aggregating $46 million during July 1994.
It is anticipated that the final maturity dates on these facilities will
be rescheduled to correspond with the closing of the WEI sale and that
these maturing obligations will be repaid with the WEI sale proceeds.
The process for the strategic analysis of Westmoreland's Eastern
coal properties is continuing and as part of that review, significant
interest has been expressed in each of those properties by potential
purchasers but it is too early to determine whether the Company will
decide to sell any properties or if discussions with the various parties
will advance beyond the current stage.
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