By early afternoon, shares had taken off 7.5% to $9.67.
The coal producer, which has suffered five quarters of net losses, said in the filing that it has commenced the process of amending the terms of its access to credit "in order to increase its financial flexibility."
Among the proposed changes, the Birmingham, Al.-based business suggests it can repay its existing term loan A facility without making pro rata repayments to its existing term loan B facility.
"The amendment would provide that upon refinancing of the entire existing term loan A (and subject to a minimum amount of the new financing being raised in a form other than first lien debt, which could include second lien and/or convertible debt), certain covenants would be amended and certain covenants would be eliminated," the company said in the document.
There is no guarantee that transactions will occur as suggested in the filing.
Must Read: Warren Buffett's 10 Favorite Stocks
TheStreet Ratings team rates WALTER ENERGY INC as a Sell with a ratings score of D. The team has this to say about their recommendation:
"We rate WALTER ENERGY INC (WLT) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, poor profit margins, generally disappointing historical performance in the stock itself and generally high debt management risk."