Pembina Pipeline to pay $102M in Ruby Pipeline settlement

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Pembina Pipeline (NYSE:PBA) -1.1% after saying late Friday it agreed to pay $102M to settle its liabilities for the Ruby Pipeline it jointly owns with Kinder Morgan (NYSE:KMI), as the gas pipeline company works to emerge from Chapter 11 bankruptcy protection.

The Chapter 11 plan provides for the potential sale by auction of Ruby's assets with a distribution of the value of the Ruby estate to its creditors following confirmation of the plan; if the plan is approved as currently contemplated, Pembina (PBA) said its affiliates retain all rights to recovery under the 2026 subordinated notes as a creditor.

Ruby filed its bankruptcy petition in March seeking to restructure more than $475M in long-term debt that came due.

Pembina Pipeline (PBA) has showed Y/Y improvement in most measures of financial performance, and is working to raise its presence in the rapidly growing liquefied natural gas space, Power Hedge writes in an analysis published recently on Seeking Alpha.