Ultra Petroleum debtor’s case dismissal on hold to allow mediation

By Caroline Salls

Pittsburgh, Oct. 20 – The hearing on dismissal of Ultra Petroleum Corp. debtor Ultra Wyoming LGS, LLC’s Chapter 11 bankruptcy case has been postponed to allow mediation, according to an agreed order filed Thursday with the U.S. Bankruptcy Court for the Southern District of Texas.

As previously announced by CorEnergy Infrastructure Trust, Inc., Corridor Pipeline, LP asked the court to dismiss the Ultra Wyoming case.

“We filed the motion to dismiss because we believe that our debtor is solvent, and we do not believe a debtor is entitled to use bankruptcy solely to reject a lease with its only creditor,” CorEnergy said.

In addition, CorEnergy said a response filed by Ultra Petroleum “has created uncertainty in the market” regarding CorEnergy’s Pinedale LGS lease.

CorEnergy said it disagrees with Ultra’s analysis of the cost to divert production off CorEnergy’s system to an alternative system because Ultra’s analysis ignores the cost of rejection to the estate.

CorEnergy said Ultra has until Nov. 28 to decide whether to accept or reject its lease. However, under Thursday’s order, Ultra Wyoming and Corridor agreed to an extension of that deadline to Dec. 15.

If the mediation is not successful, the case dismissal hearing will be rescheduled, the order said.

Ultra Petroleum is a Houston-based independent exploration and production company. The company filed bankruptcy on April 29 under Chapter 11 case number 16-32202.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.