Read Larry Connors' blog – Short Term Trading Strategies
The Colorado Springs-based company renewed the credit line Oct. 28 with First Interstate Bank of Billings, Mont., but the amount was cut in half to $10 million because one of the banks funding the line withdrew from the lender group, Westmoreland said Monday in a filing with the Securities and Exchange Commission. The bank that withdrew wasn't identified, nor was its reason for withdrawing.
Westmoreland had borrowed $6.2 million from the credit line at the time it was extended that would have to be repaid Nov. 28 if the line isn't renewed, which the company said would deplete its cash reserves. Even if the credit line is renewed for $10 million, Westmoreland said it would be "required to obtain additional capital from other sources" to pay for retiree health care and other expenses as soon as next month.
The company said it will negotiate with First Interstate and other lenders and will also seek other sources of equity or debt financing, even if the credit line is renewed for $20 million, the filing said.
While the company had $69 million in cash as of June 30, most of it is held by subsidiaries and is not available to the parent company except through dividends, said Diane Jones, a Westmoreland spokeswoman. First Interstate is working with Westmoreland to seek a lending commitment from what she called "another entity" to replace the $10 million.
Bentley Offutt, president of Maryland-based Offutt Securities Inc. and a longtime Westmoreland stockholder, said Tuesday he thinks Westmoreland will resolve the credit line problems. He said the company needs "to resolve their liquidity problems for the long term so they have the capital to invest in the business."
Westmoreland -- which owns five mines in Montana, North Dakota and Texas and a North Carolina power plant -- lost $29.7 million, or $3.14 a share, during the first half of the year and must report its third quarter financial results by Monday under SEC rules. Westmoreland stock gained 11 cents in trading on the American Stock Exchange to $10.05, its highest closing price in nearly a month.
To see more of The Gazette, or to subscribe to the newspaper, go to http://www.gazette.com. Copyright (c) 2008, The Gazette, Colorado Springs, Colo. Distributed by McClatchy-Tribune Information Services. For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.
More News:
Market Updates |
Stock Alerts |
All Trading News |
Stock Index
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
15260 Ventura Blvd., Ste. 2200
Sherman Oaks, CA 91403
© Copyright 2009 The Connors Group, Inc.
