Calgary-based Pembina Pipeline Corp. announced Nov. 18 that the company and certain of its wholly owned affiliates have entered into a settlement agreement with Ruby Pipeline LLC.
The terms of the settlement agreement provide for, upon approval of the U.S. Bankruptcy Court for the District of Delaware and the payment of all amounts contemplated by such agreement, the release of Pembina from any causes of action arising in connection with, among other things, prepetition distributions and the bankruptcy case. In consideration, the settlement agreement provides for the payment from Pembina to Ruby of $102 million USD. The U.S. Bankruptcy Court for the District of Delaware is expected to consider the terms of the settlement agreement at a hearing for Ruby’s Chapter 11 plan proposed for Jan. 23, 2023.
The plan provides for the potential sale by auction of Ruby’s assets with a distribution of the value of the Ruby estate to its creditors following confirmation of the plan. In the event the plan is approved as currently contemplated, Pembina’s affiliates retain all rights to recovery under the 2026 Subordinated Notes as a creditor, subject to the terms of the plan and the Subordination Notes, after accounting for any rights of subordination in favor of other creditors.
Pembina Pipeline is a leading energy transportation and midstream service provider that has served North America’s energy industry for more than 65 years. Pembina owns an integrated network of hydrocarbon liquids and natural gas pipelines, gas gathering and processing facilities, oil and natural gas liquids infrastructure and logistics services, and a growing export terminals business. Through its integrated value chain, the company seeks to provide safe and reliable infrastructure solutions that connect producers and consumers of energy across the world, support a more sustainable future and benefit our customers, investors, employees and communities.
Pembina is structured into three divisions: Pipelines Division, Facilities Division and Marketing & New Ventures Division.Tags: Bankruptcy, Pembina Pipeline Corp, Ruby Pipeline