Houston-based Ryckman Creek Resources LLC and its parent, Peregrine Midstream Partners LLC, have filed for Chapter 11 bankruptcy.
During the pendency of the reorganization proceeding, the company's gas storage facility will continue to operate as usual. Ryckman operates a 53 Bcf gas storage facility that serves the Opal Hub in Wyoming. It was closed following a fire in 2013 but recently reopened (see Daily GPI, Jan. 8). Commercial natural gas storage services started at the facility in Uinta County, WY, during summer 2012 (see Daily GPI, Aug. 22, 2012).
Ryckman has interconnections with Northwest Pipeline, Overthrust Pipeline, Questar and Kern River, and Ruby Pipeline. All of the pipelines are connected to the Opal Hub. Receipts and deliveries with Cheyenne Plains, Colorado Interstate Gas, Wyoming Interstate Co. and Rockies Express can also be scheduled through the Overthrust pipeline.
Also filing for bankruptcy were Peregrine Rocky Mountains LLC and Ryckman Creek Resources Holding Co. LLC. The companies said they have completed a successful first day hearing before the bankruptcy court in Delaware, allowing them to access interim debtor-in-possession financing.
The court provided interim approval for a debtor-in-possession bridge facility, providing the companies with adequate liquidity to continue operations during the Chapter 11 process, and continue ongoing discussions with their lenders to restructure their capital structure, according to an announcement on the Peregrine website.
"The filing for Chapter 11 was a difficult decision for the company and our stakeholders; however, given the significant liquidity challenges facing the company we had no alternative available," said CEO Rob Foss.
A toll-free number, (877) 634-7178 was established for customers, employees, vendors and other interested parties who have questions regarding the restructuring. Additionally, court filings and other documents related to the restructuring are available at www.kccllc.net/ryckman.