Dominion Resources Black Warrior Trust termination completed Dec. 30

By Caroline Salls

Pittsburgh, Dec. 30 – The Dominion Resources Black Warrior Trust said it would complete its termination process as of Dec. 30, and, since the trust’s assets do not exceed its liabilities, the trust is unable to make a distribution to unitholders.

According to a news release from trustee Southwest Bank, the trust was required to terminate because it failed to maintain a 1.2 to 1.0 ratio of cash received under royalty interests to administrative costs for two consecutive quarters.

The trustee said the trust did not maintain the ratio as a result of the non-payment of distributions to the trust by Walter Energy, Inc.

Southwest Bank said it has been involved in various appeals of bankruptcy court rulings regarding the Walter Energy bankruptcy cases, but the trust was unsuccessful in obtaining a favorable ruling on any of its appeals and does not intend to file further appeals.

Walter Energy is the parent of Walter Black Warrior Basin LLC. Birmingham, Ala.-based Walter Energy is a metallurgical coal producer that filed for bankruptcy on July 15, 2015 under Chapter 11 case number 15-02741.

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