CorEnergy to Emerge From Bankruptcy, Moves Out of KC HQ

CorEnergy will emerge from bankruptcy on June 12 with CEO and headquarters.

Posted June 3, 2024

CorEnergy Infrastructure Trust has gained approval from the U.S. Bankruptcy Court for the Western District of Missouri and has entered into a reorganization plan.

As part of the reorganization, CorEnergy will move its headquarters from Kansas City to Denver, according to a release.

CorEnergy is expanding to emerge from bankruptcy on June 12, 2024.

Following CorEnergy’s emergence from bankruptcy, its common stock will be owned by the holders of its 5.875% unsecured convertible senior notes due 2025 and existing preferred equity holder. CorEnergy’s existing common stock will all be canceled and the new common stock will be traded in the OTC market. Furthermore, the company will no longer file reports with the Securities and Exchange Commission.

Upon emerging from bankruptcy, the company will also change its leadership. The current CEO, Dave Schulte, will replace president and CFO Robert Waldron. Additionally, a new chair will be seated on the board of directors.

“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 the release.

In February, CorEnergy announced it had filed for Chapter 11 bankruptcy as part of an agreement with its noteholders to restructure the company’s debt.