Form 8-K
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report(Date of earliest event reported):
September 10, 1997
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WESTMORELAND COAL COMPANY
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(Exact name of registrant as specified in its charter)
DELAWARE 0-752 23-1128670
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(State or other jurisdiction (Commission File (I.R.S. Employer
of incorporation or Number Identification No.)
organization)
2 North Cascade Avenue, 14th Floor, Colorado Springs, Colorado 80903
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 719-442-2600
Item 5. Other Events
The Company announced today that it has completed the
sale of Westmoreland-Corona, Inc., an affiliate of its subsidiary
Westmoreland Energy, Inc. to Corona Acquisition, Inc. of Safety
Harbour, Florida.
Item 7. Financial Statements and Exhibits
(c)
No. Description
99.1 Press release dated September 10, 1997, regarding
the sale of Westmoreland-Corona, Inc.
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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: September 10, 1997 /s/ Robert J. Jaeger
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By: Robert J. Jaeger
Senior Vice President-Finance
Treasurer and Controller
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EXHIBIT 99.1
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Westmoreland Completes
Sale of Corona
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Colorado Springs, CO -- September 10, 1997 -- Westmoreland Coal
Company (Debtor-in-Possession) (OTC Bulletin Board: WMCLQ)
announced today that it has completed the sale of Westmoreland-
Corona, Inc., an affiliate of its subsidiary Westmoreland Energy,
Inc. to Corona Acquisition, Inc. of Safety Harbour, Florida.
Corona was purchased by Westmoreland Energy, Inc. in October,
1995 and provides maintenance and specialty repair services to
the utility industry. Corona Acquisition, Inc. was formed by St.
James Capital, Inc., also of Safety Harbour, Florida, to purchase
Westmoreland-Corona, Inc. and combine it with other similar
companies to create a large utility maintenance business. A
public offering of Corona Acquisition, Inc. is under
consideration.
Westmoreland Energy will receive approximately $1.9 million in
consideration which includes a combination of cash payments and
the release of certain obligations to the previous owners of the
Corona companies. Westmoreland will also receive a 15% share of
the voting stock of Corona Acquisition, Inc. or, upon any public
offering, stock in that new entity worth $2 million at the
initial offering price.
Christopher K. Seglem, Chairman, President and CEO of
Westmoreland Coal Company stated, "We are very pleased that an
arrangement could be made with Corona Acquisition, Inc. which
allows the Corona group of companies to remain operational,
returns a significant part of our initial investment to us, and
gives us some future upside potential.
As a result primarily of a weaker than expected utility repair
and maintenance market, Corona has not performed in accordance
with Westmoreland's expectations. This, in combination with
constraints related to Westmoreland's Chapter 11 filing, makes it
imprudent for Westmoreland to invest additional money to sustain
Corona or to acquire additional related businesses to achieve the
required profitability as planned by St. James Capital."
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For further information contact Diane Jones (719) 448-5814.
