Ruby Pipeline receives confirmation of third-amended Chapter 11 plan

By Sarah Lizee

Olympia, Wash., Jan. 13 – Ruby Pipeline LLC’s third amended Chapter 11 plan was confirmed by the U.S. Bankruptcy Court for the District of Delaware, according to an order filed Friday.

The latest amendment was made to the plan on Jan. 9, and changes were made to the terms of the exculpated and released parties. The plan’s creditor treatment was not changed under the amendment.

As previously reported, the company gained court approval to sell its assets to winning bidder Tallgrass MLP Operations, LLC for a purchase price of $282.5 million bid. The anticipated closing date is Jan. 31.

Under the plan, priority non-tax claims, secured claims and general unsecured claims are unimpaired.

The $10 million Klamath claim will be satisfied in full as it will be reinstated against the reorganized debtor.

Notes claims will be paid in full.

Subordinated notes claims are unimpaired with full recovery.

Existing equity interests will be extinguished.

As of the petition date, the company had $475 million in unsecured notes claims and $234.4 million in subordinated notes claims.

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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