Ultra Petroleum Corp. (Ultra) announces that it has reached an agreement to settle Rockies Express Pipeline LLC's (REX) US$303 million breach of contract claim. The settlement will be submitted to the US Bankruptcy Court for approval and will be implemented in connection with Ultra's chapter 11 plan of reorganisation.
The settlement includes a cash payment of US$150 million to REX six months after Ultra emerges from chapter 11, but no later than 30 October 2017. Additionally, Ultra has agreed to enter into a new seven year firm transportation agreement with REX commencing 1 December 2019 for service west-to-east of 200 000 dekatherms per day at a rate of approximately US$0.37, or approximately US$26.8 million annually.
Michael Watford, Chairman, President and Chief Executive Officer of the Company, said: "Our settlement of REX's claim is another major achievement in our in-court restructuring. This settlement removes the uncertainty around this very significant claim and represents a critical step towards the implementation of the plan of reorganisation we filed last month. We appreciate the co-operation of REX and are pleased to be working with them again as business partners."
Read the article online at: https://www.worldpipelines.com/business-news/18012017/ultra-decides-to-settle-rockies-express-contract-breach-claim/