Houston-based Ruby Pipeline, a 683-mile-long natural gas pipeline joint venture between Kinder Morgan Inc. and Pembina Pipeline Corp., has filed for chapter 11 protection on March 31 in Delaware to restructure debt.
The Chapter 11 petition was filed in response to an upcoming debt repayment obligation, Ruby said in a March 31 statement.
"In recent months, the joint venture owners have been working diligently with Ruby's bondholders in an effort to work out a mutually satisfactory resolution," Ruby officials said. "While those efforts will continue, Ruby's current financial condition necessitates this filing."
In a separate March 31 statement, Ruby said its estimated general and administrative expenses, ad valorem taxes and operating expenses for fiscal year 2023 are expected to be $8.4 million, $12.8 million and $4.7 million, respectively.
"KMI will continue to operate the pipeline as chapter 11 permits daily operations to continue," the March 31 statement added. "Ruby's customers should notice no difference in its operations." The Ruby Pipeline, put into service in July 2011, begins at Opal Hub in Wyoming and traverses through the states of Utah and Nevada to end at Malin in Oregon.
Ruby officials said the company will continue to keep its customers and other stakeholders informed of developments relating to Ruby's reorganization process. The voluntary petition was filed in the United States Bankruptcy Court for the District of Delaware in Wilmington.
