In a US Securities and Exchange Commission filing earlier this month, Walter Energy said it had begun exploring refinancing options.

Walter said it was making the move to help “increase its financial flexibility” and would use the proceeds from such a transaction to repay its outstanding debt and any related fees or expenses.

The agreements would have replaced two existing loan facilities.

The metallurgical coal producer said on Friday that the refinancing would not have raised additional capital, and noted that a $450 million senior note offering had boosted its liquidity earlier this year.

"The company has no material debt principal payments due until 2015, and it requires no incremental funding at this time," it said.

The announcement followed Forbes reporting earlier on Friday that the company had withdrawn a planned $1.55 billion loan refinancing due to market conditions, citing sources.

The metallurgical coal producer’s shares slipped 17.4%, or $2.56 before they were halted at around 2pm with the news then confirmed by Walter.

Walter reported long-term debt of about $2.6 billion as of March 30, at which time it had cash balances of about $236 million.

Walter recently won a proxy battle against shareholder Audley Capital Advisors, a British hedge fund. Audley, among other things, have accused Walter of taking on too much debt at punishing interest rates.

The company's $450 million senior note offering, which closed in March, had an 8.5% coupon.