USD Partners Moves Toward Final Asset Sale with Future Plans
USD Partners LP Anticipates Sale of Key Asset
USD Partners LP (OTC: USDP) has announced that it is set to complete the sale of its Hardisty Rail Terminal, which stands as its last operational asset. This significant step comes as a requirement imposed by its lending institutions associated with the revolving credit facility. The partnership has carefully navigated a path toward this sale, influenced by events surrounding its financial commitments and the necessity to restructure its obligations.
Conditions for the Sale
The sale of the Hardisty Rail Terminal is subject to specific conditions that include the approval of third-party entities and potential rights of first refusal. The process will unfold as a result of meticulous preparation and marketing led by an independent investment bank selected by the lenders. Ensuring transparency and authority, an independent director, acting in a capacity of Chief Restructuring Officer, alongside majority stakeholders in the partnership, has endorsed this decisive move.
Winding Down Operations
Upon finalizing this sale, USD Partners LP will have essentially liquidated the majority of its holdings. Nevertheless, the partnership anticipates lingering financial obligations tied to its revolving credit facility. It is expected that, following the sale, creditors will conclude their involvement by terminating the credit facility and writing off the outstanding debts. This marks the beginning of the wind-down phase for the partnership, raising topics concerning future operational viability.
Future Plans of USD Partners
Once the transaction is concluded, USD Partners intends to provide insights on the status of its remaining financial agreements, particularly concerning the revolving credit facility and its strategy for dissolution. Investors and stakeholders are keeping an eye on USD Partners as changes arise regarding the partnership's operational landscape.
Understanding the Background of USD Partners LP
Established in 2014 by US Development Group, LLC, USD Partners LP is recognized as a fee-based master limited partnership engaged in the development, operation, and management of midstream infrastructure. The focus lies primarily on logistics solutions for crude oil, biofuels, and various energy-related products. Throughout its operational history, USD Partners has aimed at providing essential infrastructure solutions tailored for the evolving energy sector.
Insights on the Future and Investment Strategy
While the partnership aims to finalize the asset sale and resolves its obligations, it’s crucial for investors to grasp the implications. The forward-looking statements reveal the partnership’s commitment to navigating the complexities of its financial landscape, emphasizing strategies that will shape both its short-term and long-term future. With an eye towards potential risks, stakeholders are advised to consider the evolving situation at USD Partners LP.
Frequently Asked Questions
What is the recent announcement from USD Partners LP?
USD Partners LP has announced plans to finalize the sale of the Hardisty Rail Terminal, its last operating asset.
What are the conditions surrounding the sale of the Hardisty Rail Terminal?
The sale is contingent on approvals from third parties and the exercise of rights of first refusal.
What happens after the sale of the Hardisty Rail Terminal?
Post-sale, USD Partners LP plans to wind down operations and address outstanding borrowings.
Who approved the sale of the Hardisty Rail Terminal?
An independent director serving as Chief Restructuring Officer, with support from a majority of stakeholders, approved the sale.
What should investors be mindful of regarding USD Partners LP?
Investors should stay alert to potential financial risks and changes resulting from the asset sale and partnership dissolution plans.
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