CorEnergy seeks to dismiss tenant bankruptcy petition, says debtor is solvent

|About: CorEnergy Infrastructure Trust (CORR)|By:, SA News Editor

Shares of CorEnergy Infrastructure Trust (NYSE:CORR) gained 2% in today's trade ahead of a court hearing later this week on the company's motion seeking to dismiss a bankruptcy petition by one of its tenants, Ultra Wyoming LGS.

CORR is expected to argue on Thursday that Ultra Wyoming is solvent and cannot use bankruptcy court to revise a lease with its only creditor, and says the bankruptcy filing was creating market uncertainty for CORR and its Pinedale LGS facility acquired two years ago from a Shell subsidiary, according to an SEC filing.

Separately, RBC Capital downgraded CORR to Underperform from Sector Perform with a $23 price target, lowered from $30, believing the current valuation considers best case scenarios in the bankruptcy case.