Ruby Pipeline gets approval of creditor-supported bid procedures

By Sarah Lizee

Olympia, Wash., Sept. 8 – Ruby Pipeline LLC secured court approval of bid procedures for its assets or its reorganized equity, according to an order filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.

Recently, the company was in litigation with an informal group of creditors and the official committee of unsecured creditors regarding whether Ruby’s exclusive periods to file and solicit votes on a Chapter 11 plan should be extended.

However, on the eve of the exclusivity hearing, the parties were able to reach a settlement that included an agreed-upon case timeline.

If the debtor doesn’t adhere to the timeline, it could jeopardize the agreement and lead to costly litigation again, the company said.

The bid procedures call for the company to choose one or more stalking horse bidders with bid protections.

Under the bid procedures, bids are due by 4 p.m. ET on Dec. 7, an auction, if needed, will be held on Dec. 13, a sale hearing will take place on Dec. 19 if no auction is held, and a sale hearing will take place on Dec. 28 if an auction is held.

The company is hoping to close the sale by Jan. 4.

Ruby Pipeline, based in Houston, is a subsidiary of El Paso Corp. and Global Infrastructure Partners LLC. It is a 680-mile natural gas pipeline that stretches from Wyoming to Oregon. The company filed Chapter 11 bankruptcy on March 31, 2022 under case number 22-10278.

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