Hedge fund Audley Capital Partners, a shareholder in Walter Energy, the leading "pure-play" metallurgical coal producer in the world, sent a letter to Walter Energy's Chairman of Board, Michael T. Tokarz, Monday, urging the company to put itself up for sale.
The letter from Audley Capital Advisors comes only a few weeks after Walter Energy CEO Keith Calder left the company just three months after taking on the role of CEO. In a press release announcing his resignation, Calder said he was leaving effective July 31 due to "differences of opinion concerning management philosophy."
In the letter sent to Walter Energy Monday, Audley wrote: "Despite our faith in the robust fundamentals of metallurgical coal versus other commodities, we are concerned that the Company now lacks the strong leadership needed to deliver confidently on its plans and take full advantage of this unprecedented market opportunity. Keith Calder's recent departure as Chief Executive Officer citing differences in management philosophy has shaken investor confidence, adding to apprehensiveness around the lack of a permanent CFO and a Board of Directors, many of whom share interlocking directorships, which has not been as effective as we would have expected."