Audley Capital Proposes New Board For Walter Energy

Feb 20 2013 | 1:23pm ET

Britain's Audley Capital will nominate five candidates to the board of Walter Energy, arguing the coal-mining firm has “failed to deliver shareholder value” since its 2010 acquisition of Western Coal Corp.

Audley accuses Birmingham, Alabama-based Walter, which has been hit by slowing steelmaker demand for the metallurgical or “coking” coal it mines, of making questionable financial decisions, lacking consistent leadership and missing quarterly earnings targets.

In a statement it also accuses the coal-mining firm of having a “stale and out-of-depth board,” to redress which it is recommending its own slate of directors: Eddie Scholtz, formerly of BHP Billiton; Mark Lochtenberg, formerly the co-head of Glencore International's worldwide coal division; Robert Stan, a Canadian coal industry vet; Lawrence Clark, Jr., president and CEO of JW Resources; and Julian Treger, described as “one of the most experienced activists in the mining space.”

Walter Energy, in its own statement, said it was "committed to creating value for all shareholders through the successful execution of the company's strategy."

Audley was a major shareholder in Western Coal, selling a 19.8% stake in the company to Walter Energy in 2010.

Walter has yet to set a date for its 2013 annual meeting. It now has 10 board members—nine independent directors and its chief executive.


In Depth

Star Fund Managers Battered By Rocky Ride In Yields, Currencies

May 28 2015 | 6:05am ET

Some of the biggest names in the investment world have been whipsawed by the recent...

Lifestyle

Yale Receives $150 Million Gift from Blackstone’s Schwarzman

May 12 2015 | 12:10am ET

Yale University announced it has received a $150 million gift from Blackstone Group...

Guest Contributor

When Less is More: The Case for Concentrated Equity Strategies

Jun 1 2015 | 7:59am ET

The conventional wisdom is that wide diversification is the “holy grail,” as...

 

Sponsored Content

Editor's Note