Walter Energy Brookwood

Walter Energy facilities in Brookwood, Alabama.

(Josh Bean)

Hillary Clinton

Bankruptcy court has allowed Walter Energy to cancel contracts with its unions, but union representatives vow to fight to restore workers' healthcare benefits.

And the unions aren't the only ones angry - presidential candidate Hillary Clinton has spoken out against the Birmingham company's reorganization process.

"Walter Energy is attempting to shirk its healthcare and pension obligations to hardworking Alabama active miners, retirees, widows and dependents in order to appease Apollo Global Management and other investors," Clinton said in the statement." I am disappointed that the bankruptcy court in Birmingham has granted their request."

After the Birmingham-headquartered metallurgical coal company declared Chapter 11 bankruptcy protection in July, it entered into an agreement to sell its assets to a company composed of its biggest lenders. It has since asked the court to be allowed to eliminate its contracts with the unions, arguing that the potential buyer wouldn't purchase the company with those obligations intact.

U.S. Bankruptcy Judge Tamara Mitchell also granted an order to give $2 million in retention bonuses to "key executives" at Walter Energy.

"Without a significant payment, key employees would be tempted to leave," Mitchell wrote in the order.

"The total amount of money, $2 million, may also seem large," Mitchell wrote. "However, the Court must, and has, considered the size of the case, and although the Court recognizes that to all concerned it appears to be a large amount, in light of the multibillion dollar debt in this case the amount pales by comparison."

[RELATED: As Walter Energy's income plummeted, executive pay doubled]

The United Mine Workers of America International President Cecil Roberts said in a statement that Mitchell's ruling was extremely disappointing, but not surprising.

"The law is stacked against workers in American bankruptcy courts," Roberts said. "A lifetime of hard work and dedication means nothing to the courts. The life or death decisions vulnerable senior citizens will now be forced to make mean nothing to the courts."

Roberts said negotiations are underway with the company to restore healthcare benefits. The union will continue the effort to maintain unions within Walter Energy's mines.

Yesterday, Walter Energy announced it would temporarily lay off 319 people, leaving 24 mine workers at its No. 4 mine in Brookwood.

Here's the statement from the Clinton campaign in full:

"Walter Energy is attempting to shirk its healthcare and pension obligations to hardworking Alabama active miners, retirees, widows and dependents in order to appease Apollo Global Management and other investors. I am disappointed that the bankruptcy court in Birmingham has granted their request. These men and woman have put their own health and safety at risk to help power American economic success. They are entitled to the benefits they have earned and deserve. Ensuring healthcare and retirement security should be the first priority in a bankruptcy proceeding, not the last, and should certainly come before the $2 million in bonuses for Walter Energy executives the court approved yesterday.

I hope Walter Energy reverses course and does right by Alabama miners and their families. We must honor our commitments to the coal miners, transportation and power plant workers, their families and communities, who have given so much to our country. As President, I will do exactly that."