CorEnergy Provides Update on Tenant Bankruptcy Process
21 October 2016 - 9:46AM
Business Wire
On October 20th, the Ultra Petroleum Corp (“Ultra”) bankruptcy
court approved a joint request from CorEnergy Infrastructure Trust,
Inc. (“CorEnergy”) and Ultra Wyoming LGS, LLC (“Ultra LGS”) to
postpone the hearing, scheduled for October 20th, on the CorEnergy
motion to dismiss Ultra LGS from the Ultra Petroleum bankruptcy
process.
Postponement was requested because CorEnergy and Ultra LGS have
agreed to mediation, to begin as soon as reasonably practicable.
December 15th has been agreed to as the new deadline for Ultra LGS
to accept or reject the Pinedale LGS Lease in order to accommodate
scheduling.
The agreement to mediate followed the CorEnergy deposition of a
member of Ultra’s senior management taken October 19th. During the
deposition, that senior officer acknowledged that: (i) the earliest
date the Shell System could replace the CorEnergy pipeline is late
fall 2017; and (ii) the cost estimate Ultra referred to in its
recent court filing did not include hundreds of millions of dollars
in lost revenue during the approval and construction period, or the
payment of any damages to CorEnergy which may result from Ultra’s
actions.
“We believe that uninterrupted access to the CorEnergy pipeline
is the basis for Ultra’s published financial forecasts,” said
CorEnergy CEO David Schulte. “Our team has consistently
communicated our willingness to consider amendments to our lease
that are in the best interest of both organizations. We welcome the
prospect of entering a mediation process aimed at improving our
business relationship. The mediation is nonbinding, so we are able
to return promptly to the bankruptcy court with either our motion
to dismiss or a motion to approve a consensual amendment to the
lease.”
About CorEnergy Infrastructure Trust, Inc.
CorEnergy Infrastructure Trust, Inc. (NYSE: CORR, CORRPrA), is a
real estate investment trust (REIT) that owns essential midstream
and downstream energy assets, such as pipelines, storage terminals,
and transmission and distribution assets. We seek long-term
contracted revenue from operators of our assets, primarily under
triple net participating leases. For more information, please
visit corenergy.reit.
Forward-Looking Statements
This press release contains certain statements that may include
"forward-looking statements" within the meaning of Section 27A of
the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. All statements, other than statements of
historical fact, included herein are "forward-looking statements."
Although CorEnergy believes that the expectations reflected in
these forward-looking statements are reasonable, they do involve
assumptions, risks and uncertainties, and these expectations may
prove to be incorrect. Actual results could differ materially from
those anticipated in these forward-looking statements as a result
of a variety of factors, including those discussed in CorEnergy's
reports that are filed with the Securities and Exchange Commission.
You should not place undue reliance on these forward-looking
statements, which speak only as of the date of this press release.
Other than as required by law, CorEnergy does not assume a duty to
update any forward-looking statement. In particular, any
distribution paid in the future to our stockholders will depend on
the actual performance of CorEnergy, its costs of leverage and
other operating expenses and will be subject to the approval of
CorEnergy's Board of Directors and compliance with leverage
covenants.
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version on businesswire.com: http://www.businesswire.com/news/home/20161020006707/en/
CorEnergy Infrastructure Trust, Inc.Investor RelationsLesley
Robertshaw, 877-699-CORR (2677)info@corenergy.reit
CorEnergy Infrastructure (NYSE:CORR)
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