DALLAS, Dec. 30, 2015 /PRNewswire/ -- As previously
announced, Southwest Bank, the trustee of the Dominion Resources
Black Warrior Trust (NYSE: DOM) (the "Trust") was informed by
Walter Energy, Inc., the parent of Walter Black Warrior Basin LLC
(the "Company"), that it, together with certain of its subsidiaries
and affiliates, including the Company ("Debtors") filed a petition
for relief under Chapter 11 of the U.S. Bankruptcy Code (the
"Bankruptcy Code") with the United States District Court for the
Northern District of Alabama Southern Division (the "Bankruptcy
Court") on July 15, 2015 and that it has an agreement with
lenders regarding a pre-negotiated restructuring plan. There
have been several rulings related to the bankruptcy proceedings as
disclosed by the Trust in Current Reports on Form 8-K filed with
the Securities and Exchange Commission on each of August 19, 2015, September
16, 2015 and November 20,
2015.
On October 2, 2015, the Debtors
filed a motion to reject certain "executory contracts" between the
Debtors and the Trust. The Debtors sought to reject three
agreements: (i) the overriding royalty conveyance recorded in
Deed Book 1181 and Page 644 on June 30,
1994 in Tuscaloosa County,
Alabama, (ii) the Trust Agreement and (iii) the
Administrative Services Agreement (collectively, the "Dominion
Agreements"). In the Bankruptcy Court's order dated
December 28, 2015, the Bankruptcy
Court cited that agreements may be rejected under section 365 of
the Bankruptcy Code if they are "executory." The Bankruptcy Court
stated that the Dominion Agreements are executory contracts and
ruled that the Dominion Agreements are rejected under section 365
of the Bankruptcy Code. The Trustee continues to evaluate
legal options with respect to the Trust.
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SOURCE Dominion Resources Black Warrior Trust