Columbia Gas May Head For Chapter 11
Columbia Gas System, the $2.4 billion natural-gas distributor, is threatening to file for Chapter 11 protection unless gas producers agree to renegotiate old contracts. The cash-strapped Wilmington, (Del.) company warned on June 19 that it may be forced to write off up to $1 billion in the second quarter. The reason: losses from old pacts with producers at prices far above today's depressed market levels. Tied to these high-priced contracts, Columbia is finding few takers for gas it has to sell for nearly twice the going rate. The write-off could jeopardize the company's credit lines. To conserve cash, Columbia has suspended the dividend on its common stock.
To continue reading this article you must be a Bloomberg Professional Service Subscriber.
If you believe that you may have received this message in error please let us know.
- The U.S. Drops Out of the Top 10 in Innovation Ranking
- Here’s What Trump’s Tariffs on U.S. Imports Are Doing to Markets
- Musk's New Pay Deal Could Make Him the World's Richest Man—If Tesla Succeeds
- Trump's Tariffs on Solar Mark Biggest Blow to Renewables Yet
- This Rare Bear Who Called the Crash Warns Housing Is Too Hot Again