Peregrine Midstream Partners LLC filed a chapter 11 plan that proposes to slash the natural gas storage company’s debts by more than $249 million, the Wall Street Journal reported today. The plan, filed on Monday with the U.S. Bankruptcy Court in Wilmington, Del., is the product of last month’s deal under which key lenders pledged their support for a restructuring that will see them forgive several hundred million dollars in debt in exchange for new debt and/or equity in the reorganized business. The lenders that have signed the plan-support agreement include ING Capital LLC, Royal Bank of Canada and Sumitomo Mitsui Banking Corp., according to court papers. Houston-based Peregrine and its affiliates sought chapter 11 protection on Feb. 2 after the construction of its Ryckman Creek natural gas storage facility in Wyoming ran into trouble, including a fire that caused substantial damage, and contributed to the company’s debt load. Read more. (Subscription required.)
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