By early afternoon, shares had added 5.8% to $9.34, as investors saw a buying opportunity and piled into the recently-cheaper stock.
Trading volume of 6.3 million had almost exceeded its three-month daily average of 6.5 million.
Since the beginning of the week, the coal miner has taken off 10.7%.
On Monday, shares tumbled after the company filed an 8-K SEC document outlining plans to amend its credit facility. Birmingham, Al.-based Walter Energy said it has commenced the process of amending its terms "in order to increase its financial flexibility."
Some of the suggested changes included the ability to repay its term loan A facility without making pro rate repayments to its loan B facility.
Walter Energy has suffered five consecutive quarters of net losses.
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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."