CorEnergy Infrastructure Aims for June Emergence from Bankruptcy

Pipeline operator CorEnergy Infrastructure Trust, which filed for Chapter 11 bankruptcy protection in February, is on the path to emerging from the process after a court has confirmed the company’s reorganization plan.

Chairman and CEO Dave Schulte said the company’s sale of its MoGas and Omega pipelines and full repayment of its secured debt had encouraged stakeholders to vote for recapitalizing the company’s balance sheet.

“These transactions were the result of a comprehensive strategic review process in which our board and advisors analyzed all reasonably available alternatives given the challenging market conditions we have faced since 2020,” Schulte said in a press release.

In May 2023, the company said it would sell MoGas and Omega for approximately $175 million.

Throughout the bankruptcy, CorEnergy’s Crimson midstream assets, which span northern, central and southern California, have continued to operation without interruption.

“Crimson Pipeline has operated as usual throughout the company’s restructuring process and is expected to continue doing so,” said Robert Waldron, president of CorEnergy. “We await a decision on our requested San Pablo Bay rate relief before the California Public Utilities Commission to ensure the viability of the Crimson Pipeline assets, which we anticipate in late 2024. We also continue to evaluate potential opportunities to redeploy our assets into energy transition.”

Under the reorganization plan, confirmed on May 24, holders of CorEnergy’s 5.875% Unsecured Convertible Senior Notes and existing preferred equity would own the company’s common stock.

CorEnergy plans to pursue an over-the-counter listing for the shares of common stock, which will provide “liquidity for its equity owners while reducing overhead expenses to a level commensurate with its smaller size.”

The company expects to post an investor presentation about the plan before emergence, which the company expects on June 12.

Husch Blackwell LLP served as legal counsel to the company, Teneo Capital LLC as its financial adviser and Miller Buckfire as its investment banker. Faegre Drinker Biddle & Reath LLP served as legal counsel to an ad hoc group of noteholders and Perella Weinberg Partners and TPH&Co., the energy business of Perella Weinberg Partners, as its investment bankers.