Westar reviews re-restructuring

Only two years after completing a debt reorganization, Westar Mining (TSE) is reviewing a further restructuring of its financial obligations.

The original restructuring, completed in early 1990, rescheduled principal payments on Westar’s long-term debt over a 9-year period as well as reducing interest payments on $220 million to 50% of prime plus 1.75%. In addition, interest on a further $95 million was allowed to accrue at a reduced rate tied to the price of coal.

Continued operating losses at its open pit coal mining operations in southeast British Columbia have forced the company to review its restructuring options.

Westar reported an operating loss for the year ended Dec. 31, of $17.6 million on revenues of $457.1 million. The figures compare with an operating loss of $14.1 million in 1990 on revenue of $445.8 million.